Levy of service tax on Operating and Marketing Service Agr

This query is : Resolved 

15 June 2009 Dear All

We are executing Operating,Marketing and Technical services agreement with the Owner's of the property having Hotels.Under the agreement we are running the operations of the Hotel by placing General Manager and other managers of the department.Also the complete marketing support for Hotel is from our end.For this the Owner of the Hotel is paying a percentage of fees on gross operating income of the hotels monthwise.In the bills raised we are charging service tax.But the Owner's are disputing service tax as they were saying that the services are not leviable.Do we raise a bill adding service tax or not.

Also we raising debit note for salaries of our manager and asking the Owner's for reimbursement for same.Do we add service tax on this or not.

Are the services of Operation of the hotel and marketing services are leviable or not.

Please advise.

Please advise whether we are liable to deposit the service tax or not.


17 June 2009 The agreement would be cirtical.
Where the services are of running the organisation there may not be any liability under service tax.However the possible coverage under busienss support services maybe examined.

17 June 2009 Than k u Madhukar




You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries