TaxTMI 
TaxTMI 
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.
Travel agent
09 Aug 2016 
4 Replies 
1529 Views Asked by
Service tax liability on travel agency receipts: taxable on agency amounts excluding railway fare, registration depends on threshold.
A travel agent is liable to service tax on amounts received for agency services, excluding the actual railway fare, and should be registered as a rail travel agent; commission received as a sub agent for air bookings constitutes the taxable income for registration/payment analysis, though agents with receipts below the statutory exemption threshold are not required to register. Practical compliance issues arise when no books or invoices are maintained, and abatement scheme details were requested but not provided. (AI Summary)
A travel agent is liable to service tax on amounts received for agency services, excluding the actual railway fare, and should be registered as a rail travel agent; commission received as a sub agent for air bookings constitutes the taxable income for registration/payment analysis, though agents with receipts below the statutory exemption threshold are not required to register. Practical compliance issues arise when no books or invoices are maintained, and abatement scheme details were requested but not provided. (AI Summary)