dear forum and members of the CA community,
i have a question which i could not get a very clear answer for, please help me on the same.
i am a sub agent for multiple IATA agents dealing in air / train / bus tickets and also holidays and hotels.
my question is simple do i have to register for service tax ? am i liable to pay service tax ? do i have to collect service tax ?can i pay out of pocket at the end of the year ?
if yes,
under which category?
on what amount ?
rate at which it has to be paid?
please consider the following scenario :
IN CASE OF AIR TICKTS,
i buy tickets @ rs.5000
commsiion by IATA agent 250
sold to client @ 5250
total earnings actual 250 + 250
IATA raises a invoice in my name in the following way : basic fare + YQ + service tax + taxes - commission + tds (on the commission at prevailing rates)
SAME IN THE CASE OF BUS TICKETS
IN CASE OF TRAIN TICKETS NETT AMOUNT CHARGED , WE COLLECT RS. 20 PER PNR FROM THE CLIENT EXTRA.
IN CASE OF HOTELS NETT FARE CHARGED TO US.
WE CHARGE HOTEL ROOM PRICE + MARKUP ( CAN BE CALLED HANDLING CHARGES / SERVICE CHARGES / SERVICE FEE / TRANSACTION FEE OR WHATSOEVER .
In all the above cases service tax charged by the IATA agent is automatically collected by us from the client. as it is included in the charges printed on the ticket.
Being an sub agent in all these cases am i liable to pay service tax. ? if yes on what amount ?
under which category?
please answer this question as this has haunted me for very long with no accurate replies, we are even unable to expand business as we are not sure of laws which effect us.
requesting the chartered account freternity to please help me.
thanks and Best regards
naresh b gadia
8880388886
CAclubindia
