• Is Air Travel agent a part of Tour Operator?

Good Evening Sir/Madam
I have a query regarding the service Tax..I have a Two service Tax Codes 1) Air Travel Agent and 2) Tour Operator service. Now my query is that
Example: Mr. 'X' had booked Air ticket with us from Mumbai - Delhi 15 Days before Travel date for Rs. 3000/- approx and paid immediately, he called me 2 days before Travel Date and asked us to Book the Accommodation and both ways Airport transfers by Cab in Delhi and it cost approximately Rs. 4000/- in total.
Now my query is..
1) What is the Taxable portion of this Booking and How much of Service Tax should i collect from the client?
2) As i have both Service Tax Codes, we have to file returns separately? or Air ticket should include in the Tour Package? (i.e Rs. 3000/- + Rs. 4000/- = Total: Rs. 7000/-) 
3) If I include Air Ticket in the Tour Package then service Tax will be discharged on gross Amount of Air ticket i.e Rs.3000/- (Gross Amount of Air ticket is inclusive of Service Tax charged by the Airlines)
4) Or can we discharge Service Tax separately i.e 0.70% on Basic fare for Air Ticket and 4.5% on Gross Amount for Tour Package i.e Rs. 4000/- approx, because we did not collected any service Tax while booking the Air Ticket and Transaction dates are not same

Please kindly clarify my query it will be very much helpful to us

Thanks in Advance

Regards
Lukesh
Asked 7 years ago in Service Tax

Dear Sir,

Taxability shall be as follows :

1) Taxable position shall be simple as taxable service shall be both air travel booking and taxi booking

2) For any number of register services under single service tax registration only one return is required to file.

3) For any tour operator in total package service tax need to be charged on gross value only. You have to collect service tax on gross value and take credit of service tax charged by airlines. Alternatively some operator also charge two separate invoices. One reimbursement invoice for air ticket and other service charges invoice and charge service tax on service charge value only. The only concern in that is that you open the charges charged by you per transaction.

4) This option can be workout only when you issue two separate invoices - one for flight and another for rest of tour package. Big tour company follows this system only to be competitive.

Vishrut Rajesh Shah
CA, Ahmedabad
928 Answers
38 Consultations

5.0 on 5.0

Hello Sir,

You can charge service tax separately by making 2 separate invoices or in the same invoice by showing the bifurcation of Tour Charges and Flight Fare.

Only one return has to be filled for both the services.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP

Rohit R Sharma
CA, Mumbai
2104 Answers
95 Consultations

5.0 on 5.0

Dear Sir,

You can raise two separate invoices and charge service tax as per the respective invoice.

However, there will be only one service tax return against one service tax registration number.

Thanks and Regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

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