classification of Service (SAC code and rate of Tax) Required

[SOPL SOPL]

Dear Sir,

Air travel bill (flight tickets) was charged to my client (i.e,invoice in the name of our client). we paid the said amount to travel agency. Later on, we need to raise the invoice on our client for air travel charges paid(incl GST) + service charge (i.e, our income) @ 5%.

Air travel agency (Supplier) invoice details:

SAC code :99642

Rate of Tax: 5%

Here we are just a mediators to complete the transaction. IS it comes under Pure agent??

So, my issues are enumerated as below:

1. SAC Code ?

2. Rate of Tax ?

3. Valuation for GST charge (i.e, tax to be charged only on service charges or else travel charges+Service charges)

4. Is the supplier SAC code and tax rate can be used for issuing tax invoice to my client ? here the issue if we charge the aforesaid one, we are not dealing with travel agency business.

5. or can we use the SAC code for 'other support services'

Pls explain

Thanking in advance.

Regards

Gowtham

AI Summary

Clarification on SAC Code 998599: 18% Tax Rate for Air Travel Charges; GST on Service Charges Only, Not a Pure Agent A user sought clarification on the classification of Service Accounting Code (SAC) and tax rate for invoicing air travel charges paid on behalf of a client, including a 5% service charge. The user questioned whether they qualified as a 'pure agent' under GST rules. An expert clarified that without a contractual agreement, they do not qualify as a pure agent. The expert provided SAC code 998599, a tax rate of 18%, and advised charging GST only on service charges. The SAC code for 'other support services' should be used, as the user's service differs from the travel agency's.