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Service tax on packaged tour operators

elroy (Practicing CA) (90 Points)

12 October 2013

My Client is a Pvt Ltd Co. registered as a tour operator. they arrange for these overseas tours along with accomodation. what is the rate of service tax applicable to them? Can they claim cenvat credit as well or they cant if they already claim abatement?

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Nirmit Choraria (CA Final) (1333 Points)
Replied 12 October 2013

Checkout this link

https://www.servicetax.gov.in/st-profiles/tour-opr.pdf

Just amend with the rate @ 12% + 2% +1%

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Rohit Goel (Article Assistant) (21 Points)
Replied 26 March 2014

S no.	Taxable Service	Partial abatement/ Composition Scheme	Conditions	Statutory Reference
1	Accommodation booking service	10% of amount charged	1) No CENVAT Credit. 2) Invoice should be inclusive of cost of accommodation	S. No. 11(ii) of Notif. No. 26/2012-ST dt 20.6.12
2	Package tours - wherein transportation, accommodation for stay, food, tourist guide, entry to monuments and other similar services in relation to tour are provided as part of the package	Tax is payable on 25% of gross amount charged	1) No CENVAT credit available. 2) Bill to be inclusive of all charges for the tour.	S. No. 11(i) of Notif. No. 26/2012-ST dt 20.6.12
3	Tour operator – providing services solely of arranging or booking accommodation for any person in relation to a tour.	Tax is payable on 10% of amount charged	1) No CENVAT credit available. 2) Bill to be inclusive of all charges for such accommodation. 3) This exemption shall not apply in such cases where the invoice, bill or challan issued by the tour operator, in relation to a tour, only includes the service charges for arranging or booking accommodation for any person and does not include the cost of such accommodation.	S. No. 11(ii) of Notif. No. 26/2012-ST dt 20.6.12
4	Tour operator – Other than abovementioned services	Tax is payable on 40% of amount charged.	1) No CENVAT credit available. 2) Bill to be inclusive of all charges for the tour. 3) The bill issued indicates that the amount charged in the bill is the gross amount charged for such a tour.	S. No. 11(iii) of Notif. No. 26/2012-ST dt 20.6.12

I hope this answer satisfy your need

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Thank You

Smriti Anupam (8 Points)
Replied 12 April 2021

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