We are providing services of hotel accommodation to various clients after adding our margin to the cost provided by the different travel agents from which we received the services . Please tell what kind of service it is and rate of service tax on it.
For example :-We are taking services from travel agent Rs. 2000/- and sell further to the direct customers at Rs. 4000 /- (includes value addition).
Forum Debate: Service Tax Classification for Hotel Accommodation Services as Business Auxiliary, Support, or Bundled Service A discussion on a forum addresses the service tax implications for a business providing hotel accommodation services. The business, acting as an intermediary, purchases services from travel agents at 2,000 and sells them to clients at 4,000. It is advised that the service could be classified under 'Business Auxiliary Service' or 'Business Support Service,' requiring service tax payment. Another viewpoint suggests it falls under 'Bundled Service' with a 30% abatement, paying tax on 70% of the gross amount. The debate also covers whether the activity qualifies as a tour operator service, with differing opinions on the applicable tax rate and classification. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
