Service tax applicability on discounts received by tour operators travel agents on bulk booking of hotel rooms
This query is : Resolved
21 November 2015
assessee books bulk rooms in hotel, hotels in turn offers discount of 25% in package amounts of rooms. hotels considers this discount as commission and deducts tds on the same and adjust the balance discount against creditors account. on the other hand travel agent raises bills to guests and pays service tax with abatement of 90 %. whether discount received by travel agents attract service tax.
21 November 2015
In view of opted for abatement discount will not attract service tax.
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