Applicability of service tax

hello everyone

 

 

our client owns a hotels and he runns tour operation agency also. The business form is proprietorship. The doubt is regarding payment of service tax

 

1) the taxable turnover during the previous year was 11 lakhs for hotel accomdation service

2) the tour operator services was 2 lakhs.

 

Does the assessee is liable to collect service tax on tour operator services as well because the value of one service provided exceeds 10 lakhs in a year

 

what will the reply if hotel accomdation service turnover was 9 lakhs

Replies (2)

service tax is applicable on "gross receipts from all taxable services"

The tour operating service is an ancilary service for hotel service and the total income generated by rendering different services by your client crosses the limt of Rs.10,00,000/- hence it os mandatory to collect service tax.

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