S.Tax on package offer by Hotel.

[Guest]

Sir,

My hotel have received client from Russia . W e have offered the package i.e airport lifting/ stay in hotel/food/and providing car and all for  other visits to be made by them for the purpose they have come hear plus sightseeing all this for 15 days. The package amount is Rs.29 lakhs received  in foreign currency. Will they have to be charged service tax and what notif. is there to claim exemption from STax as they have paid in foreign currency. Some say there is exemptioin if received in foreign currency.Please advice.Regards

Pradip 

AI Summary

Service Tax Applies to Hotel Packages for Foreign Clients Despite Payment in Foreign Currency, Rules Clarify Provision Location. A hotel owner inquired about the applicability of service tax on a package offered to a Russian client, which included airport transfers, accommodation, meals, and sightseeing for 15 days, with payment received in foreign currency. The respondent clarified that, according to the place of provision rules, services related to hotel accommodation are considered provided in India, and thus, service tax exemption does not apply. Tax is levied after considering abatement as per Notification 26/2012-ST dated June 20, 2012.