TRAVEL AGENT - UNDER WHICH CATEGORY AND AT WHAT RATE SERVICE TAX NEED TO BE PAID

[Guest]

IN CASE OF TRAVEL AGENT BUYING AIR TICKET FROM ITAT AGENT AND SELLING TO CUSTOMER UNDER WHICH CATEGORY SERVICE TAX IS TO BE PAID AND WHAT IS RATE.

[Ravi Chopra]

Technally speaking, there is no specific head which cover this service. However, most relevat and suitable head for charging service tax on this category is Business Auxiliary Service. The service tax is payable on the value of commission received by them.

AI Summary

Service Tax on Travel Agents: Commission from Ticket Sales Falls Under Business Auxiliary Service Category A travel agent inquired about the appropriate category and rate for service tax when purchasing air tickets from an ITAT agent and selling them to customers. The response indicated that there is no specific category for this service; however, it falls under Business Auxiliary Service. The service tax is applicable on the commission received by the travel agent.