Service tax applicability?

Dear,

Actually in this case the service receiver is the Hotel and the Service Provider is the agent who is located in Non Taxable Territory i.e; outside India .

As the agent situated abroad obtains booking and forward the orders to India for execution.Since benefit of service is received in India , it is import of service and Indian hotel is liable to pay ST.

As per Rule of ST when the service provider (Agent) is in non-taxable territory (outside India) and service receiver (Hotel) is in taxable territory (India), the service tax is payable by the service receiver.

You can refer Rule 2(1)(d)(iv) of Service tax rules.

Thanks,

Sandeep