Does ota charge service tax from hotels on the commission

Queries 569 views 1 replies

Urgent..pls help with calrifications as soon as possible.

I am setting up a travel portal where the portal will used by customers for hotel bookings. We will collect the entire amount from customers and remit the net amount (tariff - commission) to hotels. Our income will the comission charged from the hotel and the convenience fees and mark up (if any) from customers.

Two questions:

1) In this scenario, do we need to charge service tax from hotels on the commission amount.

2) Service Tax from customers will be on mark up + convenience fees or mark up+ commission+ convenience fees?

 

 

Replies (1)

Service tax will be chargeable on the value of taxable services at 12.36% (including 3% Cess). Service tax will be payable on accrual basis/completion of service or receipt basis, whichever earlier.

 

  1. The basic exemption for service provider for the taxable services of aggregate value not exceeding Rs 10 lacs in a financial year subject to certain conditions is continued.

 


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