Can anyone explain how a air ticket seller travel agent will apply GST ? Whether 5% on base fare or 18% on comission or 0.9% of base fare ? A confusion prevails amongst the agents and most of them are charging 0.9% of base fare , but no such rates are mentioned in GST act. So please kindlty clarify it
8 Replies
Guru
(17 Points)
Replied 08 July 2017
Taxable Value is 5% of base fare for domestic and 10% for international.....GST is 18% on such 5% = 0.9%
RAHUL B.
(CHARTERED ACCOUNTANTS)
(92 Points)
Replied 08 July 2017
Pls can you explain me with example :
Like if Indigo Issues a bill of
base Fare : 4000
Surcharge etc: 2000
Total 6000
then 5 % will be charged on 4000 say Rs. 200/- GST is added.
Now if Agent A purchases it at 6200/- and sell it at 6700/- how will GST be charged.
Agent has also received commission from Indigo say Rs. 50/- and also earning 500/- from mark up.
Please say me how will he charge GST ? Also tell me about input credit he can avail ?
RAHUL B.
(CHARTERED ACCOUNTANTS)
(92 Points)
Replied 08 July 2017
i didnt find any such rule for chargin 18% of 5 % of base fare, Pls send me a link or something which says it ?
I found this link wherein no mention of 18% is there
https://cleartax.in/s/impact-of-gst-on-air-fares
Guru
(17 Points)
Replied 08 July 2017
https://www.cbec.gov.in/resources//htdocs-cbec/gst/valuation-gst-rules-17052017.pdf
Check 6 (3) which is the deeming provision.
As regards the commission part there is no clarity and the department has to sort out such issues.
gaurav sain
(Artical Trainee at Talati & Talati)
(28 Points)
Replied 25 February 2018
can you explain, valuation rule 5% / 10% of basic air Fair is applicable only IATA agent or other sub agents also,
gaurav sain
(Artical Trainee at Talati & Talati)
(28 Points)
Replied 25 February 2018
can you explain, valuation rule 5% / 10% of basic air Fair is applicable only IATA agent or other sub agents also,
gaurav sain
(Artical Trainee at Talati & Talati)
(28 Points)
Replied 25 February 2018
can you explain, valuation rule 5% / 10% of basic air Fair is applicable only IATA agent or other sub agents also,
Chandani Gadhia
(Audit Executive)
(63 Points)
Replied 08 June 2018
Hi,
It is applicable to main IATA Agent and not to subagent
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