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


% of base fare

(NEW RATE FROM 1.6.15)

Domestic tickets



International tickets



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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.