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Service tax on sub air travel agents


Dear all,

Please let me know that under which category sub air travle agents are chargeable to service tax. Sub airtravel agent is getting the discount from IATA on tickets and not commission from IATA or airlines.

 

Thanks & Regards,

Anil 

 
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SERVICE TAX CONSULTANT


DEAR ANIL KUMAR

 

DISCOUNT IS CONSIDERED AS COMMISSION

 

AS SERVICE IS RENDERED TO CUSTOMER

 
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Notification No. 022/97 - ST - dated - 26-06-1997

Exemption to air travel agents excess than commission received from airlines

sub-agent who is geting higher discount from IATA agent and passing lesser discount to customer. whether this commission is taxable or not ?

 

to answer above Q plz. consider following point:-

1- it is consider as trading of air tickets, so NOT liable for service tax but liable for VAT.

or

2- it is consider under BAS like commission on sales permotion,

or

3- as it is specific classification under which sub-agent is not taxable, then the same shall not be taxable under business auxiliary service

 

 
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