Service tax on air tickets

This query is : Resolved

KAMAL (Querist)
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01 May 2015 Please advise me the notification no. under which the rate of tax 0.62% and 1.236% for air tickets for domestic and international travel respectively are advised

There was a max limit of Rs. 100 and Rs. 500 of service tax on air tickets for domestic and international travel respectively as per budget 2010-11 is it still applicable

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 May 2015 The relevant provision of “Rule 6(7) of the Service Tax Rules, 1994 provide as under:
“ The person liable for paying the service tax in relation to the services provided by an air travel agent, shall have the option, to pay an amount calculated at the rate of 0.6% of the basic fare in the case of domestic bookings, and at the rate of 1.2% of the basic fare in the case of international bookings, of passage for travel by air, during any calendar month or quarter, as the case may be, towards the discharge of his service tax liability instead of paying service tax at the rate specified in section 66 of Chapter V of the Act and the option, once exercised, shall apply uniformly in respect of all the bookings of passage for travel by air made by him and shall not be changed during a financial year under any circumstances.
Presently service tax payable on 40% of amount charged as air fare.

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