Dear Sir,
I am running a small travel agency which deal with air tickets and holiday packages. I am quote clear with the abatements and tax rates. But here are few consuing queries for me.
1. For air ticketing. We act as a subagent. We issue tickets via portal of air travel agent akbar travels and they give invoice for net amount payable to them. We add a small mark up and sell the same to customer. Is it fine that we charge the service tax for the comission we add to the ticket price ? It is what the air travel company staff told us.
2. We arrange holidays via holiday suppliers in indian and abroad. Our suppliers already add the service tax of 3.63% to holiday packages. So should we again add another 3.63% to it ? It will be double taxation and the customer will have to bear it. Our profit margin will also be less. Please advise what to do in this case ?
CAclubindia
