Air travel agent

[SANDESH SHINDE]

Dear Sir, Please mention the options available to charge Service tax and in what circumstances in case of Air travel agent and also Rail travel agent , pls give us any references regarding this .thanks and regards

AI Summary

Service Tax Guidelines: Air Travel Agents Pay on 40%, Rail Agents on 30% for First-Class/AC, Cenvat Credit Rules Apply. An air travel agent inquired about the options for charging service tax for air and rail travel services. A respondent clarified that for air travel agents, service tax is payable on 40% of the charged amount, with Cenvat credit allowed for input services but not for inputs and capital goods. Certain regions are exempt from this tax. For rail travel agents, service tax applies to first-class or air-conditioned coach travel, payable on 30% of the value, with no restrictions on Cenvat credit. These guidelines are based on specific notifications effective from mid-2012.