Service Tax on other Fees
Service Tax will be applicable on following services which are part of transport of passenger by air.
|Charges or Fees related Tickets
||Rate of Service Tax
|Other than economy
As per provisions of Service Tax, the tax on ticket related collection will be applicable for taxable air transportation journeys starting in India. Service Tax (JN) on related collections will be collected against tickets where JN is already applicable
and collected on the ticket (See FAQs below).
On a single ticket, passengers originating or terminating in an airport located in the state of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura or Baghdogra in West Bengal. The exemption therefore applies to/from the following
airports: Dibrugarh,Guwahati,Jorhat,Lilabari,Silchar,Tezpur,Imphal,Shillong, Aizawl,Dimapur,Agartala,Bagdogra.
On a single ticket, Service Tax is not applicable in the state of Jammu & Kashmir (place of provision is outside taxable territory) i.e airports Jammu, Srinagar,Leh
- The tax is NOT interline able
- The tax has to be collected and remitted by the ticketing carrier
Frequently Asked Questions
Q. Currently, air journeys starting outside India are not taxable (place of provision is outside India) e.g. New York-Delhi- New York. A passenger comes to India and requests for change in date of travel. Air India office or travel agent at
New Delhi will collect USD 125 as date change fee, collected in equivalent INR. Will this fee be taxable?
A. Service Tax on re booking fee should not be taxable since it's the fare difference in case of date change, and it will form part of passenger service and since the original service is not taxable difference in amount also should not be taxable.
Q. Currently, air journey of Delhi-London-Delhi is taxable. The passenger goes to London and is a no-show for London-Delhi. London office reissues the ticket and collects No-show penalty and date change fee. Will this be taxable if transaction
performed at London?
A. No-show fee and date change fee should be taxable since it's the fare difference in case of date change, and it will form part of passenger service and since the original service is taxable difference in amount also should be taxable.
Q. Currently, air journey of Delhi-Singapore-Delhi is taxable. The passenger goes to Singapore and calls his travel agent located at Delhi to reissue the ticket. Travel agent at Delhi reissues the ticket and collects date change penalty. Will
this be taxable if transaction done in India?
A. This transaction should be taxable since it's the fare difference in case of date change, and it will form part of passenger service and since the original service is taxable difference in amount also should be taxable.