Manager
385 Points
Joined September 2017
Rekha
If your Client is buying Ticket Stock from Airlines by depositing some advance then Airlines would also probably deduct GST on it.
Liable to Deduct 1% TCS
Travel agents providing online ticketing and other services will be liable to deduct 1 per cent tax at source under the GST regime as they have been classified as e-commerce operators.
Special provision related to determination of value of service of
booking of tickets for air travel by an air travel agent
Taxable value is 5% of basic fare in case of domestic travel and 10%
of basic fare in case of international travel. Basic fare means that
part of the air fare on which commission is normally paid to the air
travel agent by the airline.
The expression ‘basic fare’ means that part of the air fare on which
commission is normally paid to the air travel agent by the airlines.
~~~~~ x~~~~~~
Airlines pay Commission and/or Incentives or Bonus for volume achieved.
Bonus may be taxable if its over & above commission.
But if Bonus is as per a Pre-supply agreement, I think it can be treated as discount. Pls verify this point. I hope other forum experts can throw some light.