Government facing huge revenue loss: IAAI

Kochi: The tussle between the airline companies and the travel agents has reached a new high with the agents coming up against the huge revenue loss suffered by the government due to the zero percent commission attitude.
In a memorandum submitted to the Prime Minister, the IATA Agents Association of India (IAAI) has pointed out that the government is losing huge revenue collected in the form of service tax and income tax from the commission of the agents. The association pointed out that the travel agents’ commission of 5 percent per ticket is not available to the tickets purchased directly from the airline companies or online.
“Both the companies and agents collect same price per ticket. While the agent pays 12.36 percent service tax and 11.33 percent income tax on the commission earned, the airline companies simply add the amount to the value of the ticket. Neither the government nor the travelling public get any benefit from it,” said Biji Eapen, IAAI president.
Agents used to get about Rs 500 per ticket booked in the domestic sector. With the zero-percent commission move from November 1, agents were asked to collect their remuneration from passengers. Interestingly the three airlines - Indian Airlines, Kingfisher and Jet Airways - have started collecting an additional amount as service charge from passengers.
06/11/08 Anil S/Express Buzz

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Categories: Indian Aviation- In General Nov 2008