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Package tour sub operator

Bimal Mehta (Senior Accountant & finance managerial) (180 Points)

31 March 2011

Hello All

My Client has started new business of package tour . He SUB agent operating PACKAGE TOUR to an Individual as well as to the group .

Is Service tax Registration complusory ?

How much percent of service tax will be applicable ?

Please let me know any benifit or any rebate is applicable or not to this sub agent ?

Thanks

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7 Replies

CA Saiyum khan (Practicing CA) (685 Points)
Replied 01 April 2011

Service Tax REgistration is compulsory if Gross REceipts exceeds Rs.900000.

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 01 April 2011

Originally posted by : Bimal
	Hello All My Client has started new business of package tour . He SUB agent operating PACKAGE TOUR to an Individual as well as to the group . Is Service tax Registration complusory ? How much percent of service tax will be applicable ? Please let me know any benifit or any rebate is applicable or not to this sub agent ? Thanks

what is role of sub agent in tour package? service tax is applied on taxable services provided, not on starting a business.

salini kyal (CA Final Student) (79 Points)
Replied 01 April 2011

Services	Service Tax	Cess @ 3% (2 % + 1 %)	Total
Tour Package	4.80 %	0.096% + 0.048%	4.944 %
Hotel Accommodation only	1.20 %	0.024% + 0.012%	1.236 %
Hotel accommodation with meals	4.80 %	0.096% + 0.048%	4.944 %
Air Ticketing – Domestic	0.60 %	0.012 % + 0.006%	0.618 %
Air Ticketing – International	1.20 %	0.024% + 0.012%	1.236 %
Railway Ticketing (on service charges)	12.00%	0.24% + 0.12%	12.36 %
Transport (for cars) Coaches also added w.e.f. 1st June 07	4.80 %	0.096% + 0.048%	4.944 %
Other miscellaneous services	12.0%	0.24% + 0.12%	12.36

Bimal Mehta (Senior Accountant & finance managerial) (180 Points)
Replied 01 April 2011

Originally posted by : salini kyal
	Services Service Tax Cess @ 3% (2 % + 1 %) Total Tour Package 4.80 % 0.096% + 0.048% 4.944 % Hotel Accommodation only 1.20 % 0.024% + 0.012% 1.236 % Hotel accommodation with meals 4.80 % 0.096% + 0.048% 4.944 % Air Ticketing – Domestic 0.60 % 0.012 % + 0.006% 0.618 % Air Ticketing – International 1.20 % 0.024% + 0.012% 1.236 % Railway Ticketing (on service charges) 12.00% 0.24% + 0.12% 12.36 % Transport (for cars) Coaches also added w.e.f. 1st June 07 4.80 % 0.096% + 0.048% 4.944 % Other miscellaneous services 12.0% 0.24% + 0.12% 12.36

Customer Books Package tour for Shimla at Rs. 30,000/- per person Includes air fare , hotel accomodation , site seeing , pickup and drop .

Then service tax will be on Rs.30,000 + 4.944 % . ????

Is there any exemption ?

Pls reply it .

salini kyal (CA Final Student) (79 Points)
Replied 01 April 2011

yes...abatement of 60% as per
notification no. 15/2007-st dated 04-04-2007

salini kyal (CA Final Student) (79 Points)
Replied 01 April 2011

I Think Service Tax will be 4.944+1.236+.618=6.78% on 30000/-

Ram Kumar (B.Com) (23 Points)
Replied 29 November 2012

Thanks for sharing such informative information. Those people who wants to open their bussiness in this line they can now know the tax information. Or what are the tax slab for them.