Tour Operator - Calculation of taxable amount

[Asked by Guest]

In case of a tour opearor, who handles inbound foreign tourists, he is liable at consolidated gross billing for the package tour with abatement of 60%. What about the billing in respect of cost of air tickets, for which the air ticket agent, th whom tickets have been booked by the tour operator, who has already charged service tax in his bill. How would the tour operator calculate his gross billing and taxable billing- by including or excluding cost of such air ticket charges? Could u pl clarify? Regds and Tks

[Surender Gupta]

Cost of air tickets is part of valuation for the purpose of service tax and availing abatement in case of package tour.

AI Summary

Valuation of package tours includes air ticket costs, making them part of taxable gross billing and eligible for abatement.
Cost of air tickets forms part of the valuation for service tax and must be included in the tour operator's consolidated gross billing when computing the amount eligible for abatement under the package tour regime.