Service tax on tour operators now taxes gross tour charges with abatements for package and accommodation only services. Service tax applies to services provided by a tour operator holding a tourist permit, with taxable value as the gross amount charged to the client including accommodation, food and other facilities. Abatements apply: 60% abatement (taxable at 40%) where a package tour mandatorily includes accommodation and the bill is inclusive; 90% abatement where the service is solely booking/arranging accommodation and the bill includes accommodation cost. Tax applies to domestic and inbound tours; outbound tours are excluded. The operator who raises the bill is responsible for registration, collection and remittance under prescribed forms and challans.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Service tax on tour operators now taxes gross tour charges with abatements for package and accommodation only services.
Service tax applies to services provided by a tour operator holding a tourist permit, with taxable value as the gross amount charged to the client including accommodation, food and other facilities. Abatements apply: 60% abatement (taxable at 40%) where a package tour mandatorily includes accommodation and the bill is inclusive; 90% abatement where the service is solely booking/arranging accommodation and the bill includes accommodation cost. Tax applies to domestic and inbound tours; outbound tours are excluded. The operator who raises the bill is responsible for registration, collection and remittance under prescribed forms and challans.
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