A meeting was held with the representatives of major airlines at on 10.09.2007, in the Service Tax Commissionerate HQ, New Delhi to interact with the trade and sort out their problems/difficulties.  The meeting was presided over by the Shri V K Garg, Commissioner of Service Tax, New Delhi.  The representatives of all the major airlines attended the meeting. 

The major issue raised during the meeting was that payment of Service Tax on full fare amount instead of only basic fare which was argued by the airlines.  After a healthy discussion, in principal, all the airlines agreed to pay the service tax on the gross fare charged and to submit the details/data asked by this office within 30 days.

Some other issues like Service tax on PSF, insurance surcharge; administrative charges have also been taken up during the meeting.  It was decided to decide these issue after detailed discussion with the Trade. All airline operators were requested to send their representative to  Shri A. K. Goel, Assistant Commissioner, on these matters.

Service tax on gross fare confirmed as payable; airlines to submit requested fare data and engage on ancillary charges. Representatives of major airlines agreed in principle that Service Tax on gross fare is payable and committed to submit the detailed fare data requested by the tax administration within thirty days. Treatment of ancillary items-Passenger Service Fee, insurance surcharge and administrative charges-was left for further detailed consultation, and airlines were requested to nominate representatives to engage with the designated tax officer on these matters.