Question 18:My client purchase air ticket from IATA Agent and sold to passenger. IATA Agent raised a bill (Air Ticket - Commission) in the name of my client and my client gives payment to IATA agent from his bank a/c. My client issue a bill to passenger i.e. Air Ticket (As per IATA Agent) + Handling Charges.

Now my question is that only commission amount is calculated as turnover or the value of air ticket will also includes in turnover'


Answer The term turnover is defined in section 2 is different from the value The value is amount on which tax is to be charged In case of air ticketing agent the value on which tax is to be paid is very small as per Rule 32(3) of CGST Rules This value should be considered as abated value for specified cases given rule 32 but the turnover amount should be calculated on the basis of invoice amount So in our opinion in absence of any clarification issued and also to take a safer side the invoice amount is to be considered for calculation of turnover (REPLY dt.22-02-2018)