Dear Experts,
With reference to Service Tax SSI Notification and Rail Travel Agent Service, Kindly clarify the following:
One of our client is providing air travel agent service, booking air tickets on behalf of his customers. The Client collects ticket amount and Commission amount. Such collection during the FY 2011-12 of ticket charges is Rs.11 Lacs and Commission on service is Rs.2.5 Lacs. The total receipt is Rs. 13.5Lacs.
As per Rule 6 of Service Tax Determination of Value Rules, rail ticket charges is not a part of value.
Also, SSI Notification states that upto aggregate sum of Rs. 10 Lacs received towards Gross Amount Charged is exempt from service tax.
Please, clarify whether SSI exemption is applicable or not, if no, from which point of time the tax should have been charged.
Regards
SHARIQUE
CAclubindia
