Regarding registration
This query is : Resolved
06 December 2016
Hello everyone,
I want to know that what name of service should be selected while filing ST-1 for tour & travel firm.
And also want to know whole procedure for registration of tour & travel firm.
I want to know that what name of service should be selected while filing ST-1 for tour & travel firm.
And also want to know whole procedure for registration of tour & travel firm.
06 December 2016
It is "Tour operator" "TOU" CODE 00440063
16 January 2017
thnx for rply and also tell me what type of income i will write in pl a/c .. commission income or anything else.?
16 January 2017
Please give detail of your activity to give you correct entry
07 February 2017
hello
what will be the depreciation rate on cars used in tour and travel business.
what will be the depreciation rate on cars used in tour and travel business.
20 July 2025
Here’s a detailed response to your three questions about your tour & travel business:
1. Service Tax Registration – ST-1 Form
What service name/code to select?
Service Name: Tour Operator
Service Code: 00440063
✅ Under Service Tax (prior to GST), this code was applicable for tour operators including those providing planning, scheduling, organizing or arranging tours.
Since Service Tax is now obsolete and replaced by GST, if you’re referring to new business setup, you should register under GST as a "Tour Operator Service" (SAC Code: 9985).
2. Income Classification in P&L Account
What type of income should be recorded?
The nature of your income in the Profit & Loss (P&L) Account depends on the business model:
A. If you act as a booking agent or intermediary:
Income Head: Commission Income
You receive commission from airlines, hotels, bus operators, etc.
B. If you own vehicles or conduct packaged tours directly:
Income Head: Tour Receipts / Tour Package Income / Travel Service Income
You bill clients directly for the entire service (transportation, accommodation, etc.)
✅ In many cases, tour operators will have both types of income, so classify accordingly in your books.
3. Depreciation Rate on Cars (Used in Tour & Travel Business)
As per the Income Tax Act (for AY 2023–24 onwards):
🛻 For motor vehicles used in business of running them on hire:
Depreciation Rate: 30% (Written Down Value method)
✅ To qualify for 30% depreciation:
The car must be registered in the firm’s name.
The business must be running the vehicle on hire (i.e., transporting passengers or goods for a fee).
If the car is not used for hire, then normal depreciation @ 15% applies.
1. Service Tax Registration – ST-1 Form
What service name/code to select?
Service Name: Tour Operator
Service Code: 00440063
✅ Under Service Tax (prior to GST), this code was applicable for tour operators including those providing planning, scheduling, organizing or arranging tours.
Since Service Tax is now obsolete and replaced by GST, if you’re referring to new business setup, you should register under GST as a "Tour Operator Service" (SAC Code: 9985).
2. Income Classification in P&L Account
What type of income should be recorded?
The nature of your income in the Profit & Loss (P&L) Account depends on the business model:
A. If you act as a booking agent or intermediary:
Income Head: Commission Income
You receive commission from airlines, hotels, bus operators, etc.
B. If you own vehicles or conduct packaged tours directly:
Income Head: Tour Receipts / Tour Package Income / Travel Service Income
You bill clients directly for the entire service (transportation, accommodation, etc.)
✅ In many cases, tour operators will have both types of income, so classify accordingly in your books.
3. Depreciation Rate on Cars (Used in Tour & Travel Business)
As per the Income Tax Act (for AY 2023–24 onwards):
🛻 For motor vehicles used in business of running them on hire:
Depreciation Rate: 30% (Written Down Value method)
✅ To qualify for 30% depreciation:
The car must be registered in the firm’s name.
The business must be running the vehicle on hire (i.e., transporting passengers or goods for a fee).
If the car is not used for hire, then normal depreciation @ 15% applies.
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