Service tax on air travel agents
This query is : Resolved
ANUPAMA GOGNA
(Querist)
06 October 2014
if a travel agent opts for Composition scheme, he has to pay service tax on basic fare only. If he is charging his profit margin in Airport Taxes paid, but the invoice to client does not mention the margin separately, whether he is liable to pay service tax on the margin charged from the client?
If it is taxable kindly provide the section where it has been mentioned?
If it is taxable kindly provide the section where it has been mentioned?
CA R SEETHARAMAN
(Expert)
06 October 2014
Air Travel Agent – 0.6% (domestic travel) – 1.2% (international booking) of basic fare – Rates specified in Rule 6(7).
ANUPAMA GOGNA
(Querist)
06 October 2014
Do the air travel agents have to pay service tax on YQ and YR Tax also?
ANUPAMA GOGNA
(Querist)
06 October 2014
:D :.................................................................................................................................
CA R SEETHARAMAN
(Expert)
06 October 2014
YQ and YR being fuel surcharge service tax not payable. No service tax payable on the margin charged other than the rate mentioned above.
ANUPAMA GOGNA
(Querist)
07 October 2014
Sir,
As per Notification No.15/2006. S T Dated 24.04.2006 it is mentioned under the heading International Air Travel that YQ and YR charges collected by the Airline from the passengers are includible in the value of taxable service provided by aircraft operator to passenger embarking in India for international journey.
Whether this is applicable for Air Travel Agent also.
As per Notification No.15/2006. S T Dated 24.04.2006 it is mentioned under the heading International Air Travel that YQ and YR charges collected by the Airline from the passengers are includible in the value of taxable service provided by aircraft operator to passenger embarking in India for international journey.
Whether this is applicable for Air Travel Agent also.
CA R SEETHARAMAN
(Expert)
07 October 2014
Rule 6 (7) specifically says basic fare.
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