Tour Operator - Calculation of taxable amount

[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

AI Summary

Tour operators must include air ticket costs in taxable billing for service tax, with 60% abatement, on package tours. A tour operator handling inbound foreign tourists is subject to service tax on the consolidated gross billing for package tours, with a 60% abatement. The question raised was whether the cost of air tickets, already taxed by the air ticket agent, should be included in the tour operator's taxable billing. The reply clarified that the cost of air tickets is included in the valuation for service tax purposes and for availing the abatement in the case of package tours.