Air travel agent - sub agent service tax liability

[Guest]

As per the clarification by the department a sub agent is not liable to take registration under air travel agent's category. But if he, while raising bill to his customer charges service tax on his bill which is the actual service tax charged by the IATA agent, is he liable to get registration and deposit the same in the government account? IATA agent Fare: 100 Service Tax 4 Less: Discount: (4) Net 100 But when customers are asking Service tax registration, what is to be done? As the tax is paid IATA agent, but sub agents can’t show the bill to the customer as it contains net of discount, how it can recover by sub agents legally? i.e. What will be the Format as against above

[Surender Gupta]

All the previous circulars and clarifications have been withdrawn. Therefore, without considering the old clarifications, you have to determine the service tax liability afresh. Accordingly sub-agent is liable to pay service tax in ordinary course.

AI Summary

Service tax liability: sub-agents must register and discharge tax afresh after withdrawal of prior clarifications. Prior departmental circulars exempting sub-agents from registration under the air travel agent category have been withdrawn; accordingly a sub-agent performing taxable services is liable to service tax in the ordinary course and must be treated as a taxable person for purposes of registration, collection and deposit.