The Hindu Business Line : TAAI moves HC on service tax

Hyderabad, April 30 The Travel Agents Association of India (TAAI) has moved the Andhra Pradesh High Court, appealing for directions to the airlines and Government to make the service tax component part of the ticket.

“We filed a petition in the court and it was admitted. It is slated for hearing in June, 2009,” Mr Vijay Mohan Raj, Chairman (Communications) of TAAI, said.

Addressing a press conference here on Thursday, he said the association was opposed to the move by the airlines, making the agents to collectservice tax from travellers.

“This is creating a lot of confusion among travellers. Like other taxes and fee,service tax too should be factored in and mentioned in the ticket,” he said.

Gazette notification

Citing an April 16, 2009, Gazette notification, he said the Government had made it clear that the ticket should indicate the total amount payable by a passenger.

“It should contain a complete break-up of the total amount, indicating the fare, tax, fee or any other charge, if any, separately,” he said, quoting from the gazette.

“If this is the case, how can airlines ask us to collect service tax separately from the passengers,” he asked.

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