Service Tax on Hotel Reservations

Pavan (CA) (76 Points)

15 April 2011  
Hotel bookings done by Mr.X with A Co.,Pvt. Ltd. where A Co., Pvt. Ltd. is acting as a hotel booking agent or say travel agent, say for Rs.1,000/- Now A CO., Pvt. Ltd. will book a hotel for Mr.X in Mumbai for Rs.1,000/-. Mr.X will be billed Rs.1,000/- (inclusive of all taxes) by the Hotel. Is A Co., Pvt., Ltd., liable for Service Tax in any way under any head. Is there any toher tax applicability in this please clarify.