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

AI Summary

Hotel Package Deal May Qualify for Lower Service Tax if Naturally Bundled; Abatement Conditions Apply A hotel operator inquired about the applicability of service tax on a package deal that includes accommodation, meals, guide services, and transportation from a railway or bus station. The operator sought clarification on whether this package would classify as a tour operator service, which is taxed at a lower rate of 3.09 percent. The respondent advised that if the package is advertised and billed as a naturally bundled service, it may qualify for abatement, provided all conditions for abatement are satisfied.