travel agent

[kunhalan kutty PV]

I am a non IATA travel agent running as Franchisee agent for a leading travel group. We collected cash from customer and sell ticket to them. Tickets purchased from our supplier and our profit is the service charge. Do I have to pay Income tax. If so on what.

[Guest]

If your income is more than the Income Tax Exempt/NIL slab then you have to pay tax on the service charge

AI Summary

Income tax liability applies where a travel agent's service charge exceeds the tax exemption threshold. The agent's receipts constitute a service charge representing the agent's profit; if the agent's total income from such service charge exceeds the applicable exemption threshold, the agent must pay income tax on that service charge income, which is taxable as the agent's income under ordinary assessment rules.