Hi All,

Watch my latest video on composition scheme for Air Travel Agents under Service Tax in India. As per rule 6 of Service Tax Rules 1994. There are 4 composition scheme under service tax, out of which 1 is being analysed in this video. For ready reference, I am providing the service tax law relating to composition scheme.

Rule 6(7) of STR, 1994   ::    COMPOSITION SCHEME FOR AIR TRAVEL AGENT [ATA]

ð  In relation to service of booking of tickets for travel by air by an Air Travel Agent, shall have the option, to pay an amount calculated

ð  at the rate of 0.7% of the basic fare in the case of Domestic Bookings, and

ð  at the rate of 1.4% of the basic fare in the case of International Bookings, of passage for travel by air,

ð  towards the discharge of his ST liability instead of paying ST at the rate of specified in Section 66-B of Chapter V of the Act

ð  and the option, once exercised shall apply uniformly in respect of all the bookings of passage for travel by air made by him and shall not be changed during a financial year under any circumstances.

Explanation :

For the purposes of this sub-rule, the expression ' BASIC FARE' means that part of the air fare on which commission is normally paid to the air travel agent by the Airline. 

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