Service tax liability for air travel agents clarified: commission-earning agents must register and collect tax, non-commissioned subagents exempt. Clarification specifies that the person obliged to collect service tax and obtain registration is the air travel agent who receives commission from an airline for booking travel after taking ticket receipts and accounting sales to the airline. GSAs/IATA agents who directly issue tickets, collect fare and receive commission must collect service tax and register; sub-agents who do not issue tickets or receive commission are not required to collect service tax or register. Free tickets with no fare or commission are not taxable. Centralised registration at the Delhi Service Tax Cell may cover branches in Haryana.
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Provisions expressly mentioned in the judgment/order text.
Service tax liability for air travel agents clarified: commission-earning agents must register and collect tax, non-commissioned subagents exempt.
Clarification specifies that the person obliged to collect service tax and obtain registration is the air travel agent who receives commission from an airline for booking travel after taking ticket receipts and accounting sales to the airline. GSAs/IATA agents who directly issue tickets, collect fare and receive commission must collect service tax and register; sub-agents who do not issue tickets or receive commission are not required to collect service tax or register. Free tickets with no fare or commission are not taxable. Centralised registration at the Delhi Service Tax Cell may cover branches in Haryana.
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