Service tax on Hotel accomodation from other travel agent

[deepak gulati]

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).

AI Summary

Service tax on resold hotel accommodation: intermediary classification, input credit and competing bases for taxable value.
Resale of hotel accommodation procured from another agent may be classed as an intermediary or Business Auxiliary/Support Service, allowing input credit for tax paid by the upstream agent and treating the reseller's taxable service as its margin; alternatively it may be a Bundled Service subject to abatement on the gross charge, while another view requires tax at full rate on the entire amount charged to the customer.