Rahul Gupta (Manager) (27 Points)
09 May 2015
Aditya RVS
(Practice)
(221 Points)
Replied 10 May 2015
Given that the service does not satisfy the definition (as below), the service of "Other taxable services" may be considered, for paying service tax on the commission, if any charged to the customer on the package purchased from Cox & Kings.
Even though the service is in relation to package tour, but since the person does not fit in the definition, the service cannot be categorized as Tour operator.
Though the service is similar to a commission agent, but it cannot be considered under Business Auxiliary services, as it does not satisfy the clause "a service incidental or auxiliary to any activity specified in sub-clauses (i) to (vi)", since there is no agency relation between the person and Cox & Kings.
“Tour Operator” means any person engaged in the business of planning, scheduling, organising or arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any mode of transport, and includes any person engaged in the business of operating tours in a tourist vehicle or a contract carriage by whatever name called, covered by a permit, other than a stage carriage permit, granted under the Motor Vehicles Act, 1988 (59 of 1988) or the rules made thereunder;
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