Service Tax on Jungle Drive

[Gajanand Verma]

An Hotel Procuring Services from outside of Hotel for managing Jungle Safari to in house Guest and paid charges to third party for services procured. hotel save only 159/- per person, is Service tax is liable on hotel on total gross receipts from Guest? 

AI Summary

Hotel Must Pay Service Tax on Jungle Safari Services; No Exemption Available; Credit Possible if Third Party Charged Tax. A hotel inquired about the applicability of service tax on jungle safari services arranged for guests, where the services are procured from an external provider. Three respondents confirmed that the hotel is liable to pay service tax on the total gross receipts from guests. They noted that there is no exclusion for such services under the negative list or mega exemption. If the third party has already charged service tax, the hotel can claim a service tax credit. Otherwise, the hotel must pay the tax on the gross amount charged to guests.