Hi,
I am a Local Travel Agent and I book Air Tickets, Hotels and other travel related services for my client.
My Question is for Air Ticket. I usually purchase ticket from a IATA Agent and sell to my client by adding a service fee. For Eg. Air fare given by Agent is Rs. 10000/- + I add a Service fee of Rs. 500/-. Total 10500/-.
What GST should i charge to my client 5% or 18% and on what amount Rs. 500 or 10500?
Thanks
Actually it is 5% of basic fare and it is neither on 10000 nor on 500
As per Rule 32.
Determination of value in respect of certain supplies.-(1)Notwithstanding anything contained in the provisions of this Chapter, the value in respect of supplies specified below shall, at the option of the supplier, be determined in the manner provided hereinafter.
(3) The value of the supply of services in relation to booking of tickets for travel by air provided by an air travel agent shall be deemed to be an amount calculated at the rate of five percent. of the basic fare in the case of domestic bookings, and at the rate of ten per cent. of the basic fare in the case of international bookings of passage for travel by air. Explanation.- For the purposes of this sub-rule, the expression “basic fare” means that part of the air fare on which commission is normally paid to the air travel agent by the airlines
In your case 5 % of Basic Fare
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