Gst on agent / tour operator of hotel abroad

[ranjan chakraborti]

1.One of my acquaintance is going to start as a commission agent / franchisee of a hotel/tour operator agency situated abroad who is managing the hotel also in another country.

He is going to get the commission for the service of booking the Indian guests as well as foreign guests.

As agreed initially the total billing would be done by the hotel/tour operator agency abroad who are managing the hotel abroad.

What would be his GST and Income tax implication :-

1. If the total billing would be done by the hotel/tour operator agency abroad who are managing the hotel abroad and he would charge commission as a fixed % on sale/fixed per person ? what would be the GST implication if he would get extra for TA/DA and fixed marketing expenses p.m. or on reimbursement basis. What would be his POS and taxable value and tax rate?
2. If he would bill the tour operator billing of the total amount to the boarder( In India as well as to foreign tourists ) what would be the implication of GST and What would be his POS and taxable value and tax rate?
3. If any advance payment would be received by him for setting up of offices in India , what would be the tax implication.

Thanks in advance ,

[RAMESH PRAJAPATI]

The transaction needs to be bifurcated as - (1) Hotel booking in abroad- in case of services related to immovable properties, the POS is where the property located. If hotel is not in India means not in taxable territory and therefore GST is not leviable. (2) For tour services rendered in India to Indian customers is taxable under GST.

Any advance received for export of goods / services is not taxable under GST.

AI Summary

GST and Income Tax Implications for Commission Agent: Foreign Hotel Services, Commission, and Advance Payments Explained An individual is seeking advice on the GST and income tax implications for acting as a commission agent or franchisee for a hotel/tour operator agency based abroad. The agency manages a hotel in another country and handles billing. The individual will earn a commission for booking Indian and foreign guests. Questions include the GST implications for commissions, travel allowances, and marketing expenses, as well as the tax treatment of advance payments for setting up offices in India. A response clarifies that services related to immovable properties abroad are not subject to GST, whereas services provided in India are taxable. Advance payments for exports are not taxable under GST.