TOUR OPERATOR

[ANUJ KUMAR]

Dear Sir,

 

Suppose I am running a Hotel with air-conditions Restaurant and applicable rates of Service Tax are 7.416 percent on room Rent, 4.944 percent on food and 12.36 percent on Guide fee.

 

If, I make package for my Hotel which include stay, food, guide fee, & Pick up from Railway Station/ Bus station. Will this package will fall under the category of Tour Operator. Tour Operator is Taxable under the service tax at the rate of 3.09 percent .  

Pl. Comment

[Madhukar N Hiregange]

If it is a package and declared as such in advertisement, order and bill then it can be considered to be a naturally bundled service as it is common in the hospitability industry. Possible to claim the abatement [ pl confirm that the conditions of that abatement are met]

AI Summary

Naturally bundled service: declared hotel packages may qualify for hospitality abatement if advertised and billed as a package.
If a hotel markets, invoices and sells stay, food, guide fee and pickup as a package, the supply can be treated as a naturally bundled service and the provider may claim the hospitality abatement provided the advertisement, order and bill consistently declare the package and the abatement's conditions are satisfied; otherwise component-wise service tax treatment applies.