Service Tax rate applicable for Hotel & Vehicle booking


27 August 2009 Hi All

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.

Pls clarify??

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

27 August 2009 But what percent of abatement can be allowed?
Can u pls let me know the exact rate of Service tax rate applicable for the above?




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