Hi,

Air Travel Agent-

Providing tickets to its cstomers on markup i.e. Airline charges plus some amount of its own markup. Bill doesnot show the breakup of charges of airline and travel agent. It only shows total amount charged from customer inclusive of tax. Now, i have 2 questions.

1. Is the bill fine? that is not disclosing the service tax figure on it.

2. On which value service tax need to be charge?

Will this make any difference if the travel agent also provides Tour Operator service to the same customer?

Any update on above query?

Dear Kapil,

1) This type of bill is not legally good. Service tax amount must be seperately shown on the invoice as per service tax rules.

2) In case, no seperate billing is done for Airline charges reimbursement and your markup then, service tax shall be charged on the total amount including airline charges.

Kind Regards
TaxReply.com

What will be the rate of service tax in case 2 in your reply?

Dear Kapil,

Service tax rates would be as follows:-

a) in case of domestic booking - 0.6% of basic fare (plus 3% cess of tax)

b) in case of international booking - 1.2% of basic fare (plus 3% cess of tax)

Kind Regards
TaxReply.com