suppose as tour operator we booked hotel at Singapore for our client (indian national) for which we paid 50,000 to hotel and charged client 55, 000. can the value of taxable service in this case be 5, 000 and can we apply 12.36% service tax on it..??
or the taxable service will be 55, 000 and we have to charge 1.24% on it..??
please clarify.....regards
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(ii) a tour, if the tour operator is providing services solely of arranging or booking accommodation for any person in relation to a tour
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10% value of gross amount charged |
Above mentioned clause is an extract of notification number 26/2012
Your value of service is 10% of gross amount charged
Invoice
Tour service. Booking of accommodation. 55000
Value of service 10%. 5500
Service tax @ 12%. 660
Edu cess @ 2%. 13.20
SHEC. @ 1%. 6.60 679.80
Amount payable. 55679.80 (round off 55680)
Rahul Dang & Associates-Chartered Accountants
Pune
CA Inter
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SMJ global advisors pvt ltd
New Delhi
B.Com
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CAclubindia
