Mountaineering/ trekking activities
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
17 January 2014
I need guidance on whether mountain climbing/ river crossing/trekking activities can be considered as service. If yes, do they attract tax and under which category.
17 January 2014
At a first instance it is not taxable , it is like amusement activity, which is subject matter of State Government
Still I expect other reader should give their views.
At a first instance it is not taxable , it is like amusement activity, which is subject matter of State Government
Still I expect other reader should give their views.
Message likes :
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Querist : Anonymous
Querist :
Anonymous
(Querist)
02 February 2014
If such service is provided to corporate in tie up with soft skill training organisations, then what is the treatment of such income with respect to taxation?
03 August 2024
Mountaineering, trekking, and related adventure activities can indeed be classified as services and are subject to taxation under specific conditions in India. Here’s a detailed breakdown:
### Classification and Taxation of Adventure Activities
1. **Classification as a Service:**
- **Service Category:** Adventure activities such as mountaineering, trekking, and river crossing can be classified under "Tour Operator Services" or "Outdoor Activities" depending on the nature of the service provided.
- **Tax Code:** In the context of Indian GST, these activities are typically classified under the broader category of "Tourism and Travel Services," and more specifically, they may fall under services related to "Outdoor Sports Coaching" or "Adventure Sports."
2. **Taxability:**
- **Goods and Services Tax (GST):** Under the GST regime, adventure sports services are subject to tax. As per the GST classification:
- **HSN Code:** Adventure sports and related activities are generally covered under HSN Code 9996 (Other Service Providers).
- **Tax Rate:** The GST rate for such services can be 18% (9% CGST + 9% SGST) as applicable to most services unless a different rate is specified for a particular service type.
3. **Corporate Tie-ups and Soft Skill Training:**
- **Income Classification:** If the adventure activities are provided as part of a corporate training program, the income earned from such activities is treated as business income. It falls under the category of "Professional Services" if related to training, or under "Outdoor Activities" if the primary nature of the service is adventure-based.
- **GST Impact:** The same GST rate (usually 18%) applies to services provided to corporate entities. Ensure that GST is properly accounted for in the invoices issued to the corporate clients.
4. **Input Tax Credit:**
- **Input Credit:** If you are providing taxable services, you can claim input tax credit (ITC) on inputs and services used to provide these adventure activities, subject to compliance with GST rules.
5. **Tax Return and Compliance:**
- **Filing GST Returns:** You need to file GST returns regularly, including the details of the adventure services provided and the GST collected.
- **Record Keeping:** Maintain proper records of transactions, including invoices and contracts with corporate clients.
### Summary:
- **Service Classification:** Adventure activities like mountaineering and trekking can be classified as services under GST, generally covered under "Tourism and Travel Services."
- **Tax Rate:** The applicable GST rate is typically 18%.
- **Corporate Tie-ups:** Income from such services provided to corporates is treated as business income and is subject to GST.
- **Input Tax Credit:** You can claim input tax credits for relevant expenses.
### Practical Steps:
1. **Verify Classification:** Confirm the exact HSN code and applicable GST rate with a tax consultant or directly from the GST portal.
2. **Invoice Correctly:** Ensure GST is correctly mentioned on your invoices to corporate clients.
3. **Compliance:** Regularly file GST returns and keep detailed records of all transactions.
For accurate advice tailored to your specific situation, consulting with a tax advisor or GST consultant is recommended.
### Classification and Taxation of Adventure Activities
1. **Classification as a Service:**
- **Service Category:** Adventure activities such as mountaineering, trekking, and river crossing can be classified under "Tour Operator Services" or "Outdoor Activities" depending on the nature of the service provided.
- **Tax Code:** In the context of Indian GST, these activities are typically classified under the broader category of "Tourism and Travel Services," and more specifically, they may fall under services related to "Outdoor Sports Coaching" or "Adventure Sports."
2. **Taxability:**
- **Goods and Services Tax (GST):** Under the GST regime, adventure sports services are subject to tax. As per the GST classification:
- **HSN Code:** Adventure sports and related activities are generally covered under HSN Code 9996 (Other Service Providers).
- **Tax Rate:** The GST rate for such services can be 18% (9% CGST + 9% SGST) as applicable to most services unless a different rate is specified for a particular service type.
3. **Corporate Tie-ups and Soft Skill Training:**
- **Income Classification:** If the adventure activities are provided as part of a corporate training program, the income earned from such activities is treated as business income. It falls under the category of "Professional Services" if related to training, or under "Outdoor Activities" if the primary nature of the service is adventure-based.
- **GST Impact:** The same GST rate (usually 18%) applies to services provided to corporate entities. Ensure that GST is properly accounted for in the invoices issued to the corporate clients.
4. **Input Tax Credit:**
- **Input Credit:** If you are providing taxable services, you can claim input tax credit (ITC) on inputs and services used to provide these adventure activities, subject to compliance with GST rules.
5. **Tax Return and Compliance:**
- **Filing GST Returns:** You need to file GST returns regularly, including the details of the adventure services provided and the GST collected.
- **Record Keeping:** Maintain proper records of transactions, including invoices and contracts with corporate clients.
### Summary:
- **Service Classification:** Adventure activities like mountaineering and trekking can be classified as services under GST, generally covered under "Tourism and Travel Services."
- **Tax Rate:** The applicable GST rate is typically 18%.
- **Corporate Tie-ups:** Income from such services provided to corporates is treated as business income and is subject to GST.
- **Input Tax Credit:** You can claim input tax credits for relevant expenses.
### Practical Steps:
1. **Verify Classification:** Confirm the exact HSN code and applicable GST rate with a tax consultant or directly from the GST portal.
2. **Invoice Correctly:** Ensure GST is correctly mentioned on your invoices to corporate clients.
3. **Compliance:** Regularly file GST returns and keep detailed records of all transactions.
For accurate advice tailored to your specific situation, consulting with a tax advisor or GST consultant is recommended.
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