Point of Taxation rules fix service tax on airline tickets by earlier of payment or invoice date, treating agent receipts as principal. The Circular applies the Point of Taxation Rules to airline ticketing: the tax point is the earlier of payment receipt or invoice issuance, so tickets issued before the rate change but paid for before that date attract the prior rate. Payments received by agents are treated as payments to the airline principal where a principal-agent relationship exists, and any excess tax collected and not refunded must be remitted to government under the statutory recovery mechanism.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Point of Taxation rules fix service tax on airline tickets by earlier of payment or invoice date, treating agent receipts as principal.
The Circular applies the Point of Taxation Rules to airline ticketing: the tax point is the earlier of payment receipt or invoice issuance, so tickets issued before the rate change but paid for before that date attract the prior rate. Payments received by agents are treated as payments to the airline principal where a principal-agent relationship exists, and any excess tax collected and not refunded must be remitted to government under the statutory recovery mechanism.
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