Accounting for travel agent applicability of service tax

I have to account for a travel agent

As per service tax rules regn is req if turnover above 10 lac

He booked tickets for 200 passenger and per ticket 10000

However earned only rs 100 per ticket

How to account. is service tax regn mandatory. he tells that my rates will increase if i have to pay service tax

pls advice

Replies (3)

Only commssion of air travel agent is liable to tax . But basic exemption of Rs.10L is available .

In the case the travel agent will be entitled for exemption from service tax till his service tax amount exceds Rs.10 lacs.

Dear All,


I am a travel agent & my turnover is crossing 1 crore this year. But Gross Comission is just Rs 3.5 lakhs.


As far as I understand, travel agents, considered Small Service providers, irrespective of the total turnover, & are not liable for tax if their total Gross comission is less than 10 lakhs.

Please clarify: whether it is turnover slab of 10 lakhs or Gross Comission Slab of 10 lakhs for servcie tax registration & liablity.

Thank you

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