Service tax/gst for travel agency

Renjith Sreekumar (29 Points)

18 February 2017  

Dear Sir,

I run a small trave agency. We have service tax registeration also. In my small town i did consult to service tax office and CA. but most of them are unclear about the current service tax or gst for travel agency and tour operators. We are confused as the same is not even communicated by department via email. 

We have the following concerns. 

1. What is the current rate slab for travel agency.

2. Airtickets, Domestic Packages, Visa, Taxi, Hotel booking, International packages all used to have different rates. Now people say its is flat 9% on all services. We book all this via a suppliers in delhi. Our suppliers charges a tax of 9% on packages. Do we need to again charge a 9% from customer for the total bill amount or just 9% on the commission we add to the bill. 

3. How is this process of taxing on services work for travel agency. 

4. Travel industry says the new GST will kill of all small scale travel agencies. 

 

Please guide us.