TaxTMI 
TaxTMI 
2016 (8) TMI 720
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....espect of commissions received by them from various foreign airlines in their capacity as General Sales Agents (GSA). 2. The brief facts of the case are that BTPL are engaged in the business of providing travel related services. They are also functioning as GSA for various foreign airlines from whom they receive additional Over- riding Commission (ORC) and target incentives. The contention of the department is that BTPL were engaged in promoting and marketing the services of international airlines in India and as such are liable to tax under BAS. Proceedings initiated against the BTPL concluded in confirmation of demands and imposition of penalties. BTPL filed appeals against service tax demands. Revenue filed appeal against one of the i....
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....when directed by PARENT AIRLINES (iv) Efforts in the area to obtain traffic for the services of PARENT AIRLINES, such efforts to include:- (a) Provision of and efficient operation of suitable Enquiry, Sales Reservations and Ticketing Offices (in accordance with PARENT AIRLINES requirements) adequately equipped for the sales of transportation for passengers. (b) Sales promotion including the development of specific markets for transportation by personal and regular contact with actual and prospective passengers and with commercial houses and Sales Agents. (c) Undertaking of special publicity when so requested by PARENT AIRLINES. (d) Prominent display of PARENT AIRLINES advertising publicity ....
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....such regulations are observed by all such passengers. (ix) The GENERAL SALES AGENT will not appoint any sales Agent who is not duly approved by IATA and/ or unrecognized by the local travel and trade authorities or associations. Approval from PARENT AIRLINES may be obtained prior to appointing a sales agent. (x) Supervision of Sales Agents appointed by the GENERAL SALES AGENT in the area and distribution to such agents of publicity matters as provided by PARENT AIRLINES and ensuring that display facilities are being provided 10 them. (xi) Liaising with the BSP Manager in the Area and keeping the clients informed of all the activities of the BSP which affect the client Airlines. (xii) Supervisi....
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.... in addition to the commnission on tickets sold by the air travel agents. BTPL by their status as GSA also received over riding commission target incentives in respect of airlines ticket sold by agents in the earmarked territory on flown basis. We find that this commission / incentives is directly attributable to the performance of BTPL as GSA for a particular airlines. In other words selling tickets and getting commission is an activity relating to air travel agency which is simply only on sale of tickets whereas as GSA BTPL are involved tin various activities which are not simply sale of tickets. These activities are generally aimed at promotion of business of foreign airlines. We find the original authority has examined this issue in det....
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....he effect that they are operating as GSA for airlines will not absolve them from the requirement of not following the registration and payment of tax w.e.f. 01.07.2003 as service tax under BAS was introduced on that date. The case of the Revenue is that intimation given to the department prior to the introduction of new levy is of no consequence. We find that there is no sufficient justifiable ground to overturn the detailed finding given by the original authority on the question of time bar. The admitted fact is that BTPL had intimated their activities to the department. Secondly, it can fairly be conceded that when the travel agents paid service tax on ticketing charges on fixed percentage, there could be a bonafide belief that there is n....
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....ndia and BTPL are providing service to these airlines in terms of GSA agreement. The period involved is from April 2008 to September 2010. In Microsoft Corporation (I) Pvt. Ltd. -2014 (36) STR 766 (Tri. Del.) it was held that there is no ambiguity that legislature in terms of Export of Services Rules, 2005 intended that services consumed outside India shall be exported. It was further held that service that is sought to be taxed is the service provided to the person paying for the service and not the service which is provided to a person in India who is not paying for the service thought he may be beneficiary of such arrangement. Here, in the present case the admitted facts are that the business of foreign airlines are promoted by BTPL. If ....