JN taxes on air travel service

[karuna satija]

Hi Sir

Can we claim the credit of JN taxes applied on Air travel and the service tax charged by Travel Agent.

If yes can u please suggest the case laws for the same and a brief description on JN taxes with its full form

Our services are IT-Software

[ANITA BHADRA]

In GST Regime , Travel Agents are not supposed to charge JN Charges on Air Tickets.

As per provisions of Service Tax, the tax on ticket related collection were applicable for taxable air transportation journeys starting in India. Service Tax (JN) on related collections were collected against tickets where JN is applicable and collected on the ticket

1. It was applicable in pre GST Regime when Service Tax was enforced. .
2. But in GST , No such JN Taxes to be charged by travel agent
3. Air Ticket Agent receives a Commission for processing the ticket issuance process between the airlines and customer. Commission earned is of that particular Agent / Agency is no way connected to the passenger.

[karuna satija]

Thanx for your valuable information. I just need a little more clarification. In air Tickets two types of ST are charged (when the service tax was enforced). One is JN(Service tax charged by the Air Company) and the second is by Air travel Agent .) I just wanna know when in Service tax(PRE GST) was the both type of Service tax could be taken as credit /refund or not.

If yes, can u please provide any case law in which the same thing is mentioned. Further the invoice is in the name of company and the travel is for business purpose.

Many Thanks

AI Summary

JN charges on air travel: pre GST ticket levies existed; GST disallows JN charges and creditability of pre GST levies is questioned.
JN charges were levied with service tax on taxable air transportation journeys in the pre GST regime and collected on tickets where applicable; under GST travel agents should not levy JN charges. Travel agent commission is treated as the agent's income and not connected to the passenger. The query asks whether both the carrier collected JN/service tax and agent charged service tax were eligible for input tax credit or refund for business travel where invoices were in the company's name.