Service tax option for air travel agents: fare based payment replaces standard percentage charge for all bookings yearly. Amendment designates air travel agents who book passage and mandap keepers who raise bills as responsible for collecting service tax. It permits an air travel agent to elect a simplified fare based method to discharge service tax by paying a prescribed fraction of the basic fare of passage instead of the general percentage of the taxable service value; the election must apply uniformly to all the agent's bookings and cannot be changed during a financial year. 'Basic fare' is defined as the part of the air fare on which commission is normally paid to the agent.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Service tax option for air travel agents: fare based payment replaces standard percentage charge for all bookings yearly.
Amendment designates air travel agents who book passage and mandap keepers who raise bills as responsible for collecting service tax. It permits an air travel agent to elect a simplified fare based method to discharge service tax by paying a prescribed fraction of the basic fare of passage instead of the general percentage of the taxable service value; the election must apply uniformly to all the agent's bookings and cannot be changed during a financial year. "Basic fare" is defined as the part of the air fare on which commission is normally paid to the agent.
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