One of my clients are actually the travel booking agents, they are not direct agents for booking the hotel & vehicle booking, they are just the mediators between the Travellers & Travel agents.
They raise an Invoice to the Travellers based on the expenses incurred to them on travel agents.
They say their applicable Service Tax rate is as follows:
1.For booking for Hotels only –1.03%. 2.For booking of both Hotel & Vehicles - 2.58%. 3.For booking of Vehicles only – 4.12%.
Can anyone pls tell me are they correct that their service is taxable on above percent only or at normal service tax rate of 10.3% itself.
27 August 2009
They can enjoy the abatement of services for hotel & vehicle booking. For other services like pp/visa 10.3% would apply and for dom air tkts 0.618% and for intl 1.236% are applicable