Service tax applicability on air ticket agent service

You are provided the taxable service then you have to registered with service tax department.

But my client is earning less than l0 Lakh P.A.

Earnings doesn't matter...what matter is gross turnover...which is more than 10 lakh in ur case..hence will be taxable..but yes ur frnd has option 2 pay on composition scheme basis

Earning not realevent for levy of service tax. the person whose turn over exceed from 9 lakh should registered and charge after 10 lacs in first year...and from begining to the next year...

@ Utsav Madaan

There is option 1 i.e. service tax on commission (Taxable Income) which lesser than 10 Lakh.

Kindly explained with some Notifications & Circulars

OPTION A. If ur client has seperately disclosed his comission than..on such comission @ 12.36 % + if less than 10 lakh in p/y no S.T...but in case not shown seperately than @ 0.6 % + cess on value of domestic tickets sold and @ 1.2 % + cess on value of international tickets sold...and in

And I think turnover in this case..should be equal to comission only..not the value of tickets..accordingly..tax may not be payable yr...bit confusing...take expert advice yr..m still studying :P waise if tax is payable by ur client I would advise u to advise him that if his rate of comission on domestic tickets is less than 5% and in case international tickets 10% ....he should go not go for composition scheme...as they r based on such assumptions nd ya if it more than that..go for such scheme( @ 0.6 nd @ 1.2)

Dear Sir,

I have registered as a sub agent on an online travel portal which is an IATA agent.

I have issues regarding my tax liability on the Sell of Air Tickets and Hotel Bookings.

I can issue Invoice for my client from the portal itself from my account after logging in.

The Invoice which the Travel Company issues me - 

In Flight Bookings - It shows service tax in it.

Below is an example - 

Basic Fare - 4542, Taxes - 2040, Service Tax - 1.24, Booking Surcharge - 10, Commission - 201.54, TDS - 20.15, Total Amount - 6411.85 (All amount is in Rupees)

In Hotel Bookings also it shows service Tax in it.

Basic - 46850, Service Tax - 660, Fare Amount - 47510

 

The Invoice which i issue to my client - 

It also shows service tax in it.

Below is the Example of Above - 

Basic - 4542, Taxes - 2040, Service Tax - 1.24, Transaction Charges - 100, Fare Amount - 6683.24 (All Amount is in rupees)

 

Hotel Booking - 

In the booking voucher it is shown as below - 

Total Amount - 53811

Service Tax - 660

 

Please let me know if my liability is there for service tax to be charged further and deposit or i have to pay just tax on my commission (company deductd TDS on it) and the Mark Up on Hotel and Flight Tickets.

 

I have discussed with my CA today for this matter and they asked me to register for Service Tax and said that i should also charge Service Tax and can avail the reimbursement for the service tax i paid for it.

no service tax liability on your client if he is sub agent....service tax is applicable on direct agents of air line company

but the Invoice which is automatically generates to be given to my client, it reflects service tax in it.

So, my main concern is how to raise an invoice for my client if service tax is not applicable.

 

I have to pay which kind of tax.