Industry & Economy
-
Taxation
Logistics
-
Airlines
Govt hikes service tax rate under alternate method for air travel agents
K.R. Srivats
Ashwini Phadnis
New Delhi
,
Sept. 16
THE Finance Ministry has hiked the tax rates that have been specified for air travel agents opting to discharge their service tax liability through the alternate method.
In the case of domestic bookings - under the alternate method specified under service tax rules - the Revenue Department has now held that the air travel agents can discharge their service tax liability by calculating the tax at the rate of 0.5 per cent (earlier it was 0.4 per cent) of the basic fare.
For international bookings, the service tax under the alternate method could be computed at the rate of 1 per cent (earlier 0.8 per cent) of the basic fare.
Under the alternate method, air travel agents are allowed to discharge their service tax liability by calculating the tax at the specified rate on the basic fares of tickets booked through them. This is against the regular route where the service tax is to be computed by applying the general rate (now 10 per cent) on the commission earned by the travel agents from the airlines.
Informed sources said that the hike in the rates under the alternate method is consequent to the recent increase effected in the Budget in the general rate of service tax from 8 per cent to 10 per cent.
More Stories on :
Taxation |
Airlines
Article
E-Mail
::
Comment
::
Syndication
::
Printer Friendly Page
|
