Tour operator

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Varun (Querist)
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09 May 2014 my client is in the business of arranging tours and international film shoots. He books air tickets for his customers with a mark up on the ticket cost as commission and also charges a minimum amiunt as service charge per ticket. The service charge component will be coming in the bracket of service tax @ 12.36%. My query is whether the mark up charged on tickets as commission will also attract Service tax and if yes at what rate? He is not a air ticketing agent.

Sandeep Dharar

Sandeep Dharar (Expert)
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09 May 2014 Yes the commission will also charged to ST @ 12.36%

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Varun

Varun (Querist)
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09 May 2014 Is there any way that he can charge commission and lessen his ST liability?

Sandeep Dharar

Sandeep Dharar (Expert)
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09 May 2014 If it is mentioned in invoice then how can u change it?

Varun

Varun (Querist)
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09 May 2014 sir he is not mentioning the word commission separately but including his mark up in the cost of ticket. For eg if his cost is Rs 5000 , he is charging his customer 6000, the difference being his commission and Rs 150 as service charge. Now please tel me if he can avoid ST on Rs 1000. I am again repeating Rs 1000 is not mentioned in invoice separately as commission.

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