Hi All,
I'm a tour operator in Pune and provide tour packages for domestic and international both. I deal with hotel directly as well as many times i take the entire tour pkg from another tour partner. I want to understand how the service tax will work here. below is a small example:
Here are my 2 queries:
1) I take a tour pkg from tour partner @ Rs 100 & he chargers service tax of 3.5%. So ideally i pay him Rs 103.5/- Where as i forward the same pkg @ Rs 110/- and charge service tax of 3.5% on Rs 110 = Rs 113.85/-
now i want to understand here what service tax should i pay to govt. Will it be Rs 3.85 or will be 3.85 - 3.5 = 0.35
2 ) If I book tour (hotel + Traveling ) for a customer both the hotel and cab owner charges me service tax separately as per their rate where as I charge customer 3.5% on entire pkg. So in this scenario what service tax should i ideally pay to govt.
CAclubindia
