Tour Operators to Business Auxiliary Services

[RAHUL DAS]

NEED URGENT REPLY

Dear All,

Iam working in a Tour Operator Company.

As there is a change in Service Tax rate, we have lost our customers due to high cost. and our business was in a very bad condition.

And against this, our management has decided to change our service tax category as tour operator to business auxiliary services.

So, now we will be charged 15% service tax on our markup.

Kindly, provide advice on the above change and how it will affect our business (as we are accredited tour operators of both kerala govt and india govt.)

Hopefully,

Rahul Das.

AI Summary

Tour operator advised against changing service tax category; focus on abatements and benefits instead. Potential GST impact noted. A tour operator expressed concern over losing customers due to increased service tax rates and sought advice on changing their service tax category from tour operator to business auxiliary services. Replies indicated that changing the service classification is not permissible, as service tax must be paid based on the nature of the service defined by law. It was advised to utilize available abatements and benefits instead. One respondent warned that attempting to change the service category could lead to future issues, while another mentioned the potential impact of GST implementation on service tax rates.