I am an authorused sales agent of some hotels of manali and sell their rooms booking in Delhi. I gets payment in my bank account from the customer and I reemberse it later to the hotel after my commission. Will I have to pay service tax (On 60% of amount) as per the new amendment. Please help
Menu
Increased service tax on tour operator
Replies (1)
Abatement notification 26/2012-ST has been amended to increase the effective tax rate on tour operator services. Presently tour operator services are subject to service tax on 10% of the value when such services are in relation to a tour, only for arranging or booking accommodation for any person and in other cases its 30% of the value making effective rate of tax 1.5% and 4.5% respectively. Further no Cenvat credit was eligible in either of the cases.
Impact: W.e.f 22/01/2017, in case of all kinds of tour operator services, service tax shall be applicable on 60% of the value and thereby making effective rate of tax at 9% (including Cess). Further, Cenvat credit on input services would be eligible for the service providers. Cenvat credit on capital goods and inputs would continue to be ineligible.
Recent Topics :
- FAI & FAST-DS 2026 query
- Is GST registration mandatory in this case
- Buying a residential flat in Goa: should my wife b
- Income tax filling
- Applicability of RCM in the case of import of serv
- Confusion in gst registration for service category
- Itc claimed from return defaulters
- Gst input credit
- CAN PARTNERSHIP FIRM SIGN SERVICE AGGREMENT WITH A
- E-waybill
Related Topics :
CAclubindia
