Service tax applicability

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One of Client engaged in Tours & Travel Services.His Services include Hotel Bookings,Air Ticket Bookings,Visa Services etc.Moreover Such services are provided from Place of India both to Foreigner/Indians.So far services to Foreigners are concerned the amount is received in Foreign Currency.

Now query is whether such client is subject to Service Tax under Service law or not.If yes then which will be covered under taxable services & what shall be effective service tax rate. Please reply at the earliest for which thanks in Advance to experts. 

 

Replies (1)

Service provided to indians as well as foreigners is taxable service as long as the same is provided in the taxable terratory. 

 

Your client may be liable to pay service tax @ 12.36% on the commissions earned as consideration for services rendered. However, kindly note that there is basic exemption of Rs. 10 Lacs vide notification no. 33/2012.

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