Service Tax on Air Journey Agent & Tour Operator

Service Tax in India is levied on all varieties of providers besides a number of specified providers talked about within the Unfavourable Record of Providers. Service Tax on Air Journey Brokers & Tour Operators can also be levied and the speed of service on Air Journey Agent and the way of computation has been mentioned on this Article.

Service Tax on Air Journey Brokers for Air Ticket Bookings

When an Air Journey Brokers books a Ticket for you, he expenses a fee for reserving the air tickets. As he has supplied you a service by reserving the tickets in your behalf, Service Tax could be levied on the Fee charged by him for reserving the Tickets.

In a lot of the instances, the Air Journey Agent doesn’t cost any fee from the individual reserving the air tickets and expenses a fee from the Airline whose ticket has been booked. In such instances, the Fee of the Air Journey Agent will not be disclosed within the Bill and solely the Air Ticket Fare is disclosed within the Bill.

 

 

In such instances the place the Fee of the Air Journey Agent will not be disclosed within the Bill and solely the Air Ticket Fare is talked about within the Bill, the Service Tax could be levied from 1st June 2015 onwards on the charges talked about beneath:-

In case of Home Bookings 0.70% of the Fundamental Fare
In case of Worldwide Bookings 1.4% of the Fundamental Fare

Service Tax on Tour Operator

Funds 2014 has exempted Service Tax on Providers supplied by Indian Tour Operators to Overseas Vacationers in relation to a tour wholly performed exterior India is exempted from the levy of Service Tax.

Nonetheless, Service Tax would proceed to be levied on Tour Operators in all different instances besides the case specified above which has been particularly exempted in Funds 2014.

The speed of Service Tax on Tour Operators is as follows

Kind of Service Abatement allowed Taxable Portion Efficient Price of Service Tax (incl. Cess)
1. Providers by a Tour Operator in relation to a Bundle Tour 75% 25% 3.50%
2. Providers by a Tour Operator in relation to a Tour, if the Tour Operator is offering Providers solely of arranging or reserving lodging for any individual 90% 10% 1.40%
3. Service supplied by a Tour Operator aside from the two varieties of Providers specified above. 60% 40% 5.6%

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