RUPAKSHI JOBANPUTRA (FINANCE EXECUTIVE) (47 Points)
10 August 2011I 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
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 10 August 2011
Only commssion of air travel agent is liable to tax . But basic exemption of Rs.10L is available .
CA Saiyum khan
(Practicing CA)
(685 Points)
Replied 15 August 2011
In the case the travel agent will be entitled for exemption from service tax till his service tax amount exceds Rs.10 lacs.
Kalpraj
(Propreitor)
(21 Points)
Replied 07 October 2011
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
CAclubindia
