Service tax on air ticketing agents

Queries 486 views 3 replies

Hi,

I would like to seek advice and suggestion in the below as a Air Ticketing Agent.

I am air ticketing agent with a proprietorship concern with a  Turnover of Around Rs.80.00 Lacs

My commission receipts are around Rs. 1.40 Lacs for the turnover.

I purchase tickets from other agents paying service tax under airticketing agent category, some levy Service tax @ 12.36% of the commission paid, others charge @ 0.618 of Basic Fare for Domestic and @ 1.13% for International and others charge @ 12.36 on booking fee they collected from me irrespective of Commission or basic fare.

There are few tickets purchased from airlines directly where no service tax is levied by as a Ticketing agent, Airline service tax is paid.

Am I applicable to Service tax?

What do I do if I have a service tax registration?

Regards

Nipun

Replies (3)

Hi 

First you have to make registration for service tax. if You u registered means u are eligible to take service tax input credit on u are paying. And u can adjusted with the collection from the customer.

Am I applicable to Service tax? my annual reciepts of Commission is less then 10.00 Lacs

 

What do I do if I have a service tax registration? How do I calculate service tax what is the standard of calculation of airticketing agents....

If U want to take input credit irrespective of the limit u should registered for service tax. Kindly Consult the Chartered Accountant to registered for service tax formalities


CCI Pro

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