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Facilitation Fee levied by authorized travel agents on Air Tickets

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Facilitation Fee levied by authorized travel agents on Air Tickets

Principal Controller of Accounts (Ordnance Factories), Kolkata

Important Circular
Office of the PCA (Fys) Kolkata,
10A, S. K. Bose Road, 
Kolkata -700001
Dated: 20/1/2016

Sub: Facilitation Fee levied by authorized travel agents on air tickets book on Government account

A copy of Gol, MoF, DoE, OM no. 19024/1/2012-E-IV, dated 5/9/2014 on the above subject along with M/s Balmer Lawrie Co. Ltd. Letter dated 3/11/2015 is forwarded herewith for your information and guidance, please.

Nabarun Dhar
Jt. C of A.(Fys)

Government of India
Ministry of Finance
Departrnent of Expenditure

North Block, New Delhi.
Dated the 5th September, 2014.


Subject- Facilitation Fee levied by authorised travel agents on air tickets booked on Government account – Withdrawal regarding.

Attention is invited to this Department’s O.M of even number dated 10th October 2013 wherein the authorized travel agents namely M/s Balmer Lawrie & Company Limited (BLCL) M/s ,Ashok Travels & Tours (ATT) and Indian Railways Catering and Tourism Corporation Ltd. (IRCTC) were allowed to levy ‘Facilitation Fee’ @ Rs.100/- per ticket for domestic sector and Rs.300/- per ticket for international sector for air travel. Wherein Government of lndia bears the cost of air passage.

2. The issue has been re-examined in consolation with the Ministry of Civil Aviation and Department of Legal Affairs in the light of provisions of the Air craft’s Rules,1937, as amended from time to time and it has been decided to Withdraw this Department’s O.M of even number dated 10th October 2013 with immediate effect. Consequently, no service charges (by whatever nomenclature), which are not included in the tariff charged by Air India / Airlines, are required to be paid to the authorized travel agents.

3. payment to the authorized travel agents for the Bills raised by them for air tickets produced/ purchased till date in respect of air travel already undertaken or due to be undertaken would be regulated as per O.M of even number dated 10.10.2013. it is reiterated that as far as possible air tickets on Government account may be obtained directly from Air India/ Airlines (booking counter/offices/website) and if obtaining tickets directly from Air India/ Airlines is not possible should the services of authorized travel agents be availed of.

4. All Ministries/Departments are advised to bring these instructions to the notice of all concerned from compliance.

(Subhash Chand)

Balmer Lawrie

Date: November 03, 2015

Principal Controller of Accounts (FYS)
1OA, S K Bose Road
Kolkata – 700001

Kind attention: Mr. Nabarun Dhar, JT. Controller of Accounts (AN)

Dear Sir,

Kindly refer to your letter ref. no. 2078/ AN-VIII/TA-DA/BL dated 16/10/15, please note that in accordance with GOI, MoF, DoE OM no. 19024/1/2012-E.IV, dated 5/09/2014, we are not charging any Service Charge/Facilitation Fee/ Processing Fee etc. in our bill.

But SERVICETAX, EDU. Cess, & High Edu. Cess, are Govt. Statutary Taxes which are chargeable if you purchase any ticket from an agency and we are regularly depositing this Service Taxes to the service tax authority vide service tax registration no. AABCB0984EST047, which is already mentioned in our bill.

Hence you are kindly requested to make payment of service taxes accordingly.

Thanking you.

Yours faithfully,
For Balmer Lawrie & Co. Ltd.,

(S. Nath)
Sr. Branch Manager (Travel & Vacations)

Authority: http://pcafys.gov.in/

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