Requirement of registration under service tax

[Asked by Guest]

As per the newly inserted clause (zzo) in sectioin 65 (105) a new type of service has been made taxable. In actual practice offline cariers which do not fly into/out of India issue air tickets on their passage document "to any passenger in relation to international journey in any class other than economy class" even for sectors (e.g. Delhi - London)for which the passenger is actually transported by some other airline after proper endorsement. In such a case the passenger is not being transported from India by the original airline which issued the air ticket.... in such a case will service tax be levied on the airline which issues the ticket or should such a airline merely collect the service tax and then pass on the same to the airline which actually transports the passenger from Delhi requiring the latter to then deposit and comply with service tax formalities. Would it at all be necessary for the ticket issuing airline ( offline carrier) to get registered under service tax?

[Surender Gupta]

Your query is technical one, for this purpose, we require the complete details like the status, relation with the different parties, terms of the agreement etc. Only, than the comments on your would be put.

AI Summary

Service tax liability for offline ticket issuers: whether issuers must register or only collect and pass on tax.
Whether an offline carrier issuing international air tickets in classes other than economy is liable under service tax where it does not transport the passenger, and whether that issuer must register or merely collect and pass on tax to the carrier that actually performs the international journey; further factual details were sought to determine registration and compliance obligations.