Value of Services – no Rail fare collected by air travel agent
As per Rule 6(2)(iii) of the Service Tax (Determination of Value) Rules, 2006, value does not include the rail fare collected by air travel agent in respect of service provided by him.
- 20 04 2006 asked, “Does the air travel agent collect rail fare? Board should know or they should have asked the Railway Board.”
It took the Board more than two months to correct this apparent blunder, but correct they did. Now the air travel agent is changed to rail travel agent.
But why did it take so long for the Board to find out that the air travel agent does not collect rail fare and it is the rail travel agent who does? Any correction is good and welcome. To avoid litigation, Board should clarify that this kind of corrections has retrospective application.
NOTIFICATION NO . . Dated: June 27, 2006