Rail Travel Agent" means any person engaged in providing any service connected with booking of passage for travel by rail, [Section 65 (87)

Indian Service Tax

Rail Travel Agent

Effective Date: 16/08/2002.

Authority: Notification No. 8/2002-ST, dt. 1/8/2002 (for full text of Notification see under 'Beauty Parlour').

Rate of Service Tax: 8% from 14/5/2003 (5% upto 13/5/2003). 10% from 10/9/2004 - Cess 2% of 10% = 0.2. Total ST = 10.2%.

Definition: "Rail Travel Agent" means any person engaged in providing any service connected with booking of passage for travel by rail, [Section 65 (87)].

Taxable service: Rail travel agent providing services connected with booking of passage for travel by rail.

Value of taxable service: Gross amount charged from the customer or commission received from Railways.

Person liable to pay: Rail Travel Agent.

Head of Account

SI. Code SCCD Minor-head 004400150 Rail Travel Agent Services 00440200 Sub-head 00440015001 Tax Collection 00440201 115 Sub-head 00440015002 Other Receipts 00440202 114 Sub-head 00440015003 Deduct refunds 00440203 117

Main text of Departmental Circular/TN

F. No. B11/1/2002-TRU, Date: 1/8/2002

• The section referred to hereinafter are the sections or clauses of the Finance Act, 1994 as amended by the Finance Act, 2002. Reference to sub­clause or clause means clause or sub-clause of Section 65 of the Finance Act, 1994 as amended by the Finance Act, 2002.

• As per clause (72), "rail travel agent" means any person engaged in providing any service connected with booking of passage for travel by rail. The taxable service is any service provided to a customer, by a rail travel agent in relation to booking of passage for travel by rail.

• As per Section 67, the value of taxable service includes the commission or any amount received by the rail travel agent from the Railways or the customer but does not<>

• A point has been raised as to whether the service tax is leviable on rail travel agent not registered with railways. It is clarified that any person whether registered with the Railways or not engaged in providing any service connected with booking of passage for travel by rail is liable to service tax.

• Rail travel agent charges the customer, generally on per ticketlberth basis. Further, cancellation of tickets is also quite frequent and rail travel agent also charges the customer for cancellation of tickets. Service tax is payable in both the cases.