travel agent providig service to a foreigner

[Asked by Guest]

Dear Sirs,

My client is a travel agent located in Tamilnadu. His US client needs a tour booking at UK. How should he raise a bill.

[Ganeshan Kalyani]

It is export of service.

But the payment is not recd in INR. Received in dollars and paid in Euros. How we will raise the invoice.

[ShaikhAbdulSamad Ahmad]

In my view travel agent is an intermediary and as per section 13 of IGST Act, 2017 the POS is the location of the intermediary. Hence the activity will be taxable.

[KASTURI SETHI]

Travel agent can be pure agent also. That aspect cannot be ignored. So the issue has to be examined in totality.

[YAGAY and SUN]

We duly endorse the very view of Mr. Ahmed.

AI Summary

Place of supply for intermediaries can render travel agent services taxable; pure agent status may alter tax treatment.
A Tamilnadu travel agent sought guidance on invoicing and tax characterisation for arranging a UK tour for a US client with receipt of payment in foreign currencies. Respondents variously described the transaction as an export of service, raised practical invoicing questions due to foreign-currency receipts, considered the agent an intermediary whose place of supply may render the activity taxable domestically, and noted that pure-agent status could alter tax treatment, requiring a factual examination.