Does ota charge service tax from hotels on the commission

Nidhi Chatterji (MBA) (25 Points)

05 August 2015  

Urgent..pls help with calrifications as soon as possible.

I am setting up a travel portal where the portal will used by customers for hotel bookings. We will collect the entire amount from customers and remit the net amount (tariff - commission) to hotels. Our income will the comission charged from the hotel and the convenience fees and mark up (if any) from customers.

Two questions:

1) In this scenario, do we need to charge service tax from hotels on the commission amount.

2) Service Tax from customers will be on mark up + convenience fees or mark up+ commission+ convenience fees?