Finmin Orders – Facilitation Fee to be levied by authorised travel agents on air tickets booked on Government Account

‘Facilitation Fee’ to be levied by authorised travel agents on air tickets booked on Government account

“Facilitation Fee of 100/- per ticket for domestic sector and 300/- per ticket for international sector for air travel”

No. 19024/1/2012-E-IV
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated the 10th October, 2013

OFFICE MEMORANDUM

Subject:- ‘Facilitation Fee’ to be levied by authorised travel agents on air tickets booked on Government account- Regarding.

Attention is invited to this Department’s OM. of even number dated 28th May 2013 wherein all Ministries/Departments were advised not to pay Agency Commission/Charges etc. charged by M/s Balmer Lawrie & Company Limited (BLCL) in their Bills, raised for air tickets booked on Government account, till a final decision is taken in the matter.

Check also: Facilitation Fee levied by authorized travel agents on Air Tickets – Clarification orders issued by PCA(Fys)

2. The matter has been considered and it has now been decided that, in lieu of withdrawal of ‘Transaction Fee’ by Air India/Airlines, the authorised 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), are allowed to levy ‘Facilitation Fee’ of 100/- per ticket for domestic sector and 300/- per ticket for international sector for air travel, wherein Government of India bears the cost of air passage.

Further, these rates are to be applied prospectively i.e. Bills raised by the authorised travel agents for journeys undertaken should not include this fee.

3. All Ministries/Departments are again advised that, as far as possible, air tickets on Government account may be obtained directly from Air India/Airlines (booking counters / offices / website). Only when obtaining tickets directly from Air India / Airlines is not possible, should the services of authorised travel agents be availed of. These instructions should be brought to the notice of all concerned for strict compliance.

sd/-
(Subhash Chand)
Deputy Secretary to the Government of India

Source : www.finmin.nic.in