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Urgent...!!

@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)

27 November 2012

I want to know everything about AIR TRAVEL AGENT in service tax. and most important is whether there is any case law in last six month??

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karan jit singh (Consultant) (1299 Points)
Replied 27 November 2012

FIRST OF ALL , Air Travel Agent means any person engaged in providing any services connected with the booking of passage for travel by air.

Service provider - An air travel agent

Service receiver – Any person

Scope of taxable services – Any service provided or to be provided to any person, by an air travel agent in relation to booking of passage for travel by air is a taxable service.

The services relating to booking of passage by air are taxable.

The value of taxable services will include the commission received by the travel agent from the airline. However, service tax is not payable on the fare collected by air travel agents.

The portion of the value of taxable service which is in excess of the commission received by the air travel agent from the airline for booking of passage for travel by air is exempt from service tax payment.

The air travel agent has an option to pay

service tax @ 0.60% of basic fare in case of domestic booking and

@ 1.20% of the basic fare in case of international bookings.

REGARDS

KARAN

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