Service tax qurery

Dear Shubham,

The value of taxable service is the gross amount charged by such agent from the customer for services in relation to the booking of passage for travel by air, excluding the air fare but including the commission, if any received from airline in relation to such booking.

Therefore, the value of taxable services will include the commission received by the travel agent from the airline. However, it will exclude the fare amount collected from the customer.

Dear Sir,

I give one of the ticket details as per IATA Billing Statement:-

Basic fare :- Rs.43990

JN(S.Tax @ 4.944%):-Rs.2175

Other Tax:-Ts.6408

Total Amount:- Rs.52573

Commission @ 3%-Rs.1320

Discout @ 3%:- Rs.1320

Net payable :- Rs.49933

Now assume no extra commission is charged by Air Ticket Agent, then if the client charging S.Tax on Rs.1320 @ 13.20% i.e. Rs.163. Again if we take the Input Credit of JN Charges of Rs.2175 .Ultimately we don't have S.Tax Liability.

Again question arises - whether client should charge S.Tax or not?

If yes then how return will be filed???