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
Anil Kumar (Partner) (25 Points)
07 March 2012Dear 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
EKALABYA TALUKDAR
(SERVICE TAX CONSULTANT)
(666 Points)
Replied 08 March 2012
DEAR ANIL KUMAR
DISCOUNT IS CONSIDERED AS COMMISSION
AS SERVICE IS RENDERED TO CUSTOMER
lalit
(article)
(36 Points)
Replied 30 March 2012
|
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
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