Service tax on foreign tour packages provided to indian resi

@ Anchal CA

If the service provider and the service receiver are located in a taxable territory, the place of provision of service is the location of service receiver, as per Rule 8 of the Place of Provision of Services Rules, 2012.

As per Rule 8, the place of provision of service is the location of the service receiver. As Indian Resident fall under the taxable territory, the service tax will be payable by residents.

Tour operator needs to charge service tax on Indian tourists going to Outside India for Tour, whether or not the payment is received in foreign currency.

Service Tax Chargeability :- (w.e.f 01.06.2015)

(i) Whole Tour Package :  3.50%

(ii) Only hotel bookings (without meals) -  1.40 %

                                      (with meals)  -  3.50%

(iii) Only Air ticket booking  ( for Domestic Bookings)  - 0.70% of the Basic Fare

                                             (for International Bookings) -- 1.40% of the Basic Fare

Regards

Piyush Tanwar

Mobile - 9717468521

Email - capiyushtanwar91 @ gmail.com