Manan (CA) 06 January 2010
| Hi. one of my client has a business of 1. air travel booking. but he booked ticket from other travel agent and get commission. and 2. he manages tours in India means he booked hotels for client and arrange for car and add his margin and issue bill to client. my query is whether he is liable to service tax? what is the limit? and how the same is calculated. pls mail the reply to ca.mananshah@yahoo.com Thanks and regards. |
Raj Kumar Makkad (Adv P & H High Court Chandigarh) 07 January 2010
As replied earlier, your cleint is liable to pay service tax as he is providing tours and travels service in India which comes under service tax.
Asha Pole (Legal) 22 January 2010
If you' re client is not an IATA registered agent, and he in turn is buying tickets from another agent towards commission then he is not included under definition of Air Travel Agent and thereby he will not be liable to pay service tax under sale of Goods act as air ticket & hotel rooms are tradeable goods.
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