Travel agent

[CA AJAY KUMAR AGRAWAL]

Mr A is running a Travel Agency. He books Railway Tickets online & makes payment through his Saving A/c. He collects cash (mostly) & cheques (in few cases) from clients & deposits in his saving account. He maintains no accounts / issues no invoices etc. Consider the value of tickets booked during year is more than ₹ 10 Lacs. My question is :- 1. Whether he needs to get registered under Service Tax? 2. If yes, then in which category (accounting head)? 3. If Service Tax to be paid, on which value of ticket booked & at what rates? Kindly share your views.

AI Summary

Travel Agent Must Register for Service Tax on Rail Bookings, Air Commissions Below Exemption Limit A travel agent, Mr. A, inquires about service tax obligations for his agency, which books railway and air tickets. He primarily deals in cash and does not maintain formal accounts or invoices. The total value of tickets booked annually exceeds 10 lakhs. An expert suggests that Mr. A is liable for service tax on amounts received, excluding railway fares, and should register as a rail travel agent. For air ticket commissions, which are around 25,000 annually, Mr. A falls under the exemption limit of 10 lakhs and need not register for service tax. Further clarification on abatement schemes is requested.