Client is IR (Indians representative) of a cruise company. Cruise co. is not having permanent establishment in India. Clint is booking cruises in India getting payment in Indian as well as Foreign currency. Cruises are not entering in Indian Territory. IR is raising bills & getting commission for services provided in India for cruise booking. He is not charging and paying any service tax on commission income. Whether services are covered under service tax Act and attract service tax provision.
I am enclosing here with the view of one consultant, please advice.
Here Intimidatory means other travel Agents booking on behalf of IR and getting commission from IR. No service tax is being paid/ charged by them also.


1. That your trade is cover under section 65 (105) (zzzv) which state as under:
“Taxable services means any services provided or to be provided to any person, in relation to transport of such person embarking from any port pr other port in India, by a cruise ship.”
2. Secondly, accordingly to sec. 65A classification of taxable services are well defined and trade is undisputedly fully covered by sec. 65(105) (zzzv). Hence, no other clause of section 65 (105) is applicable to your trade. Consequently Business Auxiliary Services, Tour Operators services etc are not applicable to your trade.
3. Service Tax is payable to the government by the service provider and the service provider has the authority to collect the same from the service consumer. In your case as the service provider is (having no permanent establishment in India) and as none of the consumers are covered by the conditions of section 66A read with rule 2(1)(d)(iv) of Service Tax Rules and as the service is consumed outside India no service tax is payable in India as the Service Tax Act applies to service consumed in India or are exported out of India.
Keeping in view the facts of your case, I am of the opinion that neither assessee nor any other Intimidatory is a service provider hence no service tax is payable on services rendered by you or to you.



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