Travel agent

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CA Dipesh Jain (Querist)
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08 January 2014 MY CLIENT IS A TRAVEL AGENT. FIRST HE IS BOOKING TICKET IN BUS THEN COLLECT CASH AND AT THE END OF DAY HE IS DEDUCTING HIS PERCENTAGE CHARGE AND REFUNDING REST AMOUNT TO BUS OWNER. IS HE LIABLE FOR SERVICE TAX? IF YES ON WHICH AMOUNT? WHAT ABOUT INCOME TAX? PLZ EXPLAIN WITH NOTIFICATION OR OTHER PROVISION.

THANKS IN ADVANCE

Nikhil Kaushik

Nikhil Kaushik (Expert)
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08 January 2014 1. yes service tax is applicable

http://www.servicetax.gov.in/st-profiles/trvlagent-other.pdf

2. what about income tax??? you pay tax on your income. 44AD is not available.

thanks

CA Dipesh Jain

CA Dipesh Jain (Querist)
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08 January 2014 Thanks for prompt reply.

service tax on which amount?? and whether it is liable for TDS?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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08 January 2014 well I hoped that you will read the link I gave you. TDS is not required on payments made to the bus owner. However, if the bus owner make any payment to the travel agent, TDS would be applicable.