Service tax on train tickets & air tickets booking

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2013 Dear Sir,

we are service provider of "Supply of Tangible Goods". My annually turnover approx. 28 Lac under Proprietorship concern. we also booking train tickets, air tickets, tour packages, taxi booking, bus booking Hotel booking etc. as a sub agent of Yatra.com, makemytrip on commission basis under another brand name of same proprietor. we earn comm. approx. 4 lac p.a.. our query is that can we charge service tax on travelling business alongwith our other business. Kindly reply with details.

CA Suresh Jain

CA Suresh Jain (Expert)
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02 August 2013 Yes, you have to pay service tax

Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2013 on which services i.e. on tickets booking & supply of tangible goods services. Please clarify.

because service tax not applicable on air tickets & train ticket as a sub agent.

CA Suresh Jain

CA Suresh Jain (Expert)
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03 August 2013 Commission received by you is not exempted.

You mentioned in your query that you are a "service provider of "supply of Tangible goods". I could not understand this. Are you a supplier of Tangible goods?
Please clarify what exactly you mean.

Querist : Anonymous

Querist : Anonymous (Querist)

03 August 2013 Sir,

actually we are provider of camera's & audio visual equipments on hiring basis.

we earn totally comm. including train tickets service charges approx. 4 lac p.a.

yatra & makemaytrip both company charge service tax to us on every booking.

SIr, my query is can we charge again service tax on every booking to our client.

but client will not pay service tax on train & air tickets.

in this case, what should we do?

Please reply.

Querist : Anonymous

Querist : Anonymous (Querist)

15 September 2013 What is the depreciation rates of broadcasting equipment's (like broadcasting camera & LiveU (A broadcasting equipment need to be LIVE on TV Channel) under companies act . Please help me.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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24 July 2025 Got it! Here's the clear breakdown for your service tax query on train and air ticket booking as a sub-agent:

1. Service tax on Air and Train ticket booking by sub-agent:
When you act as a sub-agent (like booking tickets for Yatra.com or MakeMyTrip), you are not required to charge service tax to your clients on air/train ticket bookings.

This is because air and train ticket booking services are exempt from service tax under Notification No. 30/2012-ST and related clarifications.

Also, since Yatra and MakeMyTrip are charging you service tax on the commission they pay you, you are basically a service receiver and not a service provider for this part of business.

2. Can you charge service tax on your commission on ticket booking?
No, you cannot charge service tax separately on your commission for air/train tickets because that service is exempt.

Your clients pay no service tax on tickets booking.

You pay service tax to the portal on your commission (because the portal charges it), but you do not collect service tax from your client for ticket booking.

3. Your other business (hiring cameras/audio visual equipment):
This is a taxable service (renting or hiring of tangible goods is taxable under service tax).

You must charge service tax on the hiring charges to your clients.

You should maintain separate accounting for these two different service streams.

4. Summary:
Service Service Tax Applicable? You Charge Service Tax to Client?
Air/train ticket booking (sub-agent) No (Exempt under Service Tax law) No
Hiring of cameras/audio visual equip Yes (taxable service) Yes (charge service tax on hiring)

5. Regarding your depreciation query on broadcasting equipment:
Broadcasting equipment like cameras and LiveU devices generally fall under Plant & Machinery or Electrical Equipment, and depreciation rates are usually 15% under Companies Act. But exact classification depends on accounting policy and local laws. You may want to consult a CA for precise classification.

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