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Air travel agents book airfare and get commission from airline

Instead of paying normal service tax on commission, they can pay service tax on base fare

(basic fare" means that part of the air fare on which commission is normally paid to the air travel agent by the airline.)

Rate of Service tax on tickets

Type of Booking of Air tickets

% of base fare (OLD RATE)

Effective Rate of Service tax

Effective Rate of Swachh Bharat Cess

Effective Rate of Krishi KalyanCess

Total Rate of Service Tax

Domestic tickets

0.6%

0.7%

0.025%

0.025%

0.725%

International tickets

1.2%

1.4%

0.050%

0.050%

1.50%

 

 

 

  1. Service Tax
  2. Valuation of Taxable Service
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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