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Service tax on hotel accomodation booking,

AZHARUDDIN AHMED (CA_Final_Student) (26 Points)

12 November 2012

Whether service tax liability arises, if yes @ what rate on hotel accomodation or tour package purchased from a travel agent and sold onwards to a customer by keeping a mark up on total cost of the same.(relating to partnership frim already having service tax registration number)

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3 Replies

Dilip Bandekar (Service) (85 Points)
Replied 12 November 2012

Your question is not clear.

Please clarify below mentioned doubts:-

1) Whether you will raise Invoice to a customer as Tour Operator i,e, including the package as well as Hotel Accomodation?

2) If no, how the billing is going to be done?

3) As per my understanding, You will work as a Tour Operator to your Client.

Please do the needful.

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AZHARUDDIN AHMED (CA_Final_Student) (26 Points)
Replied 12 November 2012

Thanx for prompt reply...... So, if one acts as a tour operator & raises bill, then @ what rate & on what amount it charge service tax if it receives 1) only a mark up or commission; or 2 )If it simply purchase a package from a vendor & sell the same to its client after adding a mark up ...