Tag Archives: travel agents

Travel agents providing online ticketing and other services will be liable to deduct one per cent tax at source under the GST regime as they have been classified as e-commerce operators, the CBEC said. Under the Goods and Services Tax (GST) regime, an e- commerce operator is required to collect 1 per cent of the net value of taxable supplies made through it. The amount so collected is called tax collected at source or TCS but this provision has been kept in abeyance for the time being. Online travel agents have been classified as e-commerce operators (ECO) and so they have to deduct TCS. The Central Board of Excise and Customs (CBEC), in a fresh set of frequently asked questions (FAQs), said the TCS requirement would not apply to someone selling own products through a website. Only applicable GST for the goods would be levied in that case. Electronic commerce or e-commerce means supply of goods or services, including digital products, over elect .. electronic network and an e-commerce operator is a person who owns operates or manages the electronic platform for e-commerce, it said. “Online travel agents providing services through digital or electronic platform will fall under the category of ECO (e- commerce operator) liable to deduct TCS under Section 52 of the CGST Act, 2017,” the CBEC said.

The Maharashtra Chapter of the IATA Agents Association of India (IAAI) recently conducted its Annual General Meeting in Mumbai. The AGM unequivocally declared that the present day maladies being faced by the travel agents fraternity were set off by the downfall of the national carrier that started in 2004 and was eventually hastened from end-2008 when Air India implemented zero commission (within India) to please the Star Alliance Group. Biji Eapen, National President, IAAI, said, “The AGM has unanimously decided to demand five per cent commission on gross fare and in turn, the entire travel agent community will wholeheartedly support Air India to regain its name and brand. The AGM collectively looks forward to Air India reversing its anti-travel agent policies and becoming a role model. Air India can only ensure the operation of a flight from one airport to another. But the aircraft seats have to be filled by the traditional travel agents only, as Air India’s web sale volume is marginal. Under the new GST regime, agents can survive only with the commissions as mandated by IATA Resolution 824 (Para 9) and the DGCA Order of March 5, 2010. It will be suicidal to depend on service charges as it may have to be separately invoiced.”

In a bid to prepare its members for the new Goods and Service Tax (GST) regime, Association of Domestic Tour Operators of India(ADTOI) organised a workshop for its members on July 1, 2017. The workshop was conducted at India Habitat Centre, Lodhi Road, New Delhi. G. D. Lohani, Commissioner, Central Board of Excise and Customs (CBEC); Shikhar Pant, Assistant commissioner, CBEC; Ashish Gupta, Consulting CEO, FAITH; Gyan Bhushan, Economic Advisor, Government of India and other officials from Ministry of Tourism were present during  the meeting to interact with the members and  answer their queries on GST.

Booking.com has announced the initial test pilot of Booking.com for travel agents, the first iteration of a new platform designed specifically with the unique needs of travel agents in mind. The platform features a suite of easy-to-use tools that empower travel industry professionals to seamlessly make and manage accommodation reservations for their clients via Booking.com. “We’ve seen increasing numbers of travel agents using Booking.com to manage bookings for their customers,” said Bryan Batista, Senior Director of Global Partnerships at Booking.com. “We’re pleased to now offer professional travel agents a platform and a programme that has been created just for them, with the special features they need to easily book and manage reservations for their clients, as well as the choice, diversity and seamless experience that they’ve come to love and rely on from Booking.com.” Booking.com for Travel Agents is an extension of the company’s existing Affiliate Partner Programme and leverages technology and infrastructure being developed for Booking.com for Business. Travel Agents who join the platform will be eligible for similar partner benefits as all Booking.com affiliate partners.