Service tax on sub air travel agents

Dear all,

Please let me know that under which category sub air travle agents are chargeable to service tax. Sub airtravel agent is getting the discount from IATA on tickets and not commission from IATA or airlines.

 

Thanks & Regards,

Anil 

Replies (2)

DEAR ANIL KUMAR

 

DISCOUNT IS CONSIDERED AS COMMISSION

 

AS SERVICE IS RENDERED TO CUSTOMER

Notification No. 022/97 - ST - dated - 26-06-1997

Exemption to air travel agents excess than commission received from airlines

sub-agent who is geting higher discount from IATA agent and passing lesser discount to customer. whether this commission is taxable or not ?

 

to answer above Q plz. consider following point:-

1- it is consider as trading of air tickets, so NOT liable for service tax but liable for VAT.

or

2- it is consider under BAS like commission on sales permotion,

or

3- as it is specific classification under which sub-agent is not taxable, then the same shall not be taxable under business auxiliary service

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
04 September 2026
CA inter Or ca finalist

A Jaiswal and company

Lucknow

CA Final

View Details
Company
ARTICLESHIP 29 August 2026
Article Assistant

RRPM & ASSOCIATES LLP

Chennai

CA Inter

View Details
Company
29 August 2026
Chartered Accountant

Velionit Consulting PVT LTd

Mumbai

CA

View Details
Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details
Company
ARTICLESHIP 24 August 2026
Article Assistant

M/s.S.G.Salecha & Co.

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Articles

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Foundation

View Details
Company
18 August 2026
CA Semi Qualifies

Goyanka and Associates

New Delhi

CA Inter

View Details
Company
21 August 2026
Finance Manager

Resollect Technologies Pvt Ltd

Mumbai

CA

View Details