Service tax on tour operators applies to gross tour charges, with abatements where accommodation costs are clearly billed. Service tax applies to persons who hold a tourist permit and provide services in relation to a tour; the taxable base is the gross amount charged to the client and includes accommodation, food and other facilities. For package tours that mandatorily include accommodation, a 60% abatement is available (tax on 40% of gross) where the bill clearly indicates included charges; a 90% abatement applies where the operator solely books or arranges accommodation and the bill includes accommodation cost. Tax covers domestic and inbound tours; registration, payment, quarterly returns, provisional assessment and assessment powers are prescribed.
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 applies to gross tour charges, with abatements where accommodation costs are clearly billed.
Service tax applies to persons who hold a tourist permit and provide services in relation to a tour; the taxable base is the gross amount charged to the client and includes accommodation, food and other facilities. For package tours that mandatorily include accommodation, a 60% abatement is available (tax on 40% of gross) where the bill clearly indicates included charges; a 90% abatement applies where the operator solely books or arranges accommodation and the bill includes accommodation cost. Tax covers domestic and inbound tours; registration, payment, quarterly returns, provisional assessment and assessment powers are prescribed.
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