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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) |
% of base fare (NEW RATE FROM 1.6.15) |
|
Domestic tickets |
0.6% |
0.7% |
|
International tickets |
1.2% |
1.4% |
