We are Travel agents & sell tickets purchased from Air Ticket Suppliers. Some parties charged S.Tax @ 062% & 1.24% incase of Domestic & International tickets respectively. Some parties charged S.Tax @ 12.36% on Commission they paid to us. We are not understanding that why they are charging S.tax on Commssion they are paying to us. As per us they should charge the Tax on the portion what they charged from us as Service Charges. Pl. Advise at the earliest.
Menu
Service tax on commission in air travel busines
Replies (1)
Dear Vikash
Actully u should charge service tax on the commission amount received by u if your turnover is not
below the exemption limit i.e below 10 lakh including other services under the category of Business Auxiliary Serivce. Other charges are ok.
Recent Topic
- Dividend Reporting
- Real operational bottlenecks after firms use Tally
- Purchase return under gst
- Long Term Capital Loss - cannot be carried forward
- Cross-utilization of ITC between Trading and Resta
- Form 121 eligibility for non deduction of TDS for
- Gold/silver etf. STCG. how to decalre in ITR at s
- ITR-2 : cash income that does not fall under any h
- Debit note issued to supplier
- Ca pratik takkar imp list
Related Topics
CAclubindia
