One of my client, based in Mumbai, has recently started Tours & Travels business. He has also obtained Service Tax Registration Number. Now he is getting clients for Air Ticket Booking from say Londan to Mumbai etc but booked from Mumbai itself. I would like to know Whether he should charge Service Tax on Ticke Amount or not? If So, then at What rate? Also Whether Service Tax is applicable for Bus/ Hotel Bookings in India, even if turnover is still beloow Rs.10 Lakh?
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Service tax on air ticket booking, bus booking
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No service tax would be applicable for the ticket booked in Mumbai from London to Mumbai . This is because , as per Place of provision rules,2012 , the service shall be deemed to be provided at the place where the passenger embarks for the journey . In the present case, London...hence no service tax since the service is provided outside India. If the turnover is below Rs.10 lakhs then service tax shall not be required to be applied .
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