Tour operator services

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praveen (Querist)
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22 March 2013 Hi...A tour operator is providing services to a company. Who should pay service tax? Should the company pay tax on reverse charge basis?

When a tour operator is providing services to another tour operator, who should pay service tax?

CA Priti Surana

CA Priti Surana (Expert)
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23 March 2013 No, there is no reverse charge on tour operator service. Therefore the person responsible for payment of service tax is the provider of service, no matter who is the receiver of this service.

CA Priti Surana

CA Priti Surana (Expert)
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23 March 2013 Tax is payable only on 25% of the total value of bill which should be inclusive of all charges (transportation, accomodation, food etc.)

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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23 March 2013 No Reverse Charge as Said by Priti.

But Abatement Case Differs, Tell me Fact Like Service Include any package tour, accommodation bill or its customized every time.

if packaged tour :- 75% abatement

not packaged tour but include accommodation booking : - 90% abatement

not package, not accommodation booking but
bill include accommodation bill :- 60% abatement

Pls read with Sr. No. 11 of Notification No. 26/2012-ST dated 20-6-2012

praveen

praveen (Querist)
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25 March 2013 thanks for ur reply.
But Sr. No. 7(a)of Notification No. 30/2012 -ST dated 20-6-2012, states that if service receiver is a company, the company should pay the service tax