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Services tax applicable on air travel agent

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PANKAJ MOYAL

STUDENT

89 Points Posted on 22 February 2013

Rate of tax applicable on handling charges received by air travel agent.

My query is as follows

my client is a air travel agent and earn handling charges, and i wants to know that what is tha tax rate applicable in this case, and also that is their exemption of income upto Rs 10,00,000/- is also applcible.

Replies (4)

POOJA

ARTICLE ASSISTANT

120 Points Posted on 22 February 2013

Small service provider whose aggregate value of taxable service rendered in previous year has not exceed the limit of 1000000 is exempt from payment of tax.

POOJA

ARTICLE ASSISTANT

120 Points Posted on 22 February 2013

an option is provided to air travel agent to pay tax at the rate of 0.60% of basic fare in case of domestic tickets and 1.20% in case of international tickets in discharge of their service tax liability..

PANKAJ MOYAL

STUDENT

89 Points Posted on 22 February 2013

the rate provided by you are not for the income earned by way of handling charges can you tell me that is service tax rate 12.36% is applicable or not on income earned by way of handling charges

POOJA

ARTICLE ASSISTANT

120 Points Posted on 25 February 2013

Income from comission/fees from related service are chargable for service tax. in your case handling charges are neither commision nor fees related to service being provided by service provider so rate of 12.36% is not applicable for ths amount at all..