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? 

[JAMES PG]

ST payable since there is no exclusion for such services eitehr under negative list or mega exemption

[YAGAY andSUN]

Yes Sir, you will have to pay the service tax on the gross amount charged from your guests.  If the Third party has charged service tax while providing such services to you then you may avail the service tax credit of the service tax so charged by the Third party and utilized against the payment of service tax on the Gross value of taxable services.

[Vijay kumar]

The service in question is certainly taxable and tax is payable on the gross amount charged for the service. If the third party pays the tax on the gross amount charged, u need not pay the tax, otherwise the liability would be yours.

AI Summary

Service tax liability on hotel-arranged third-party services - tax due on gross guest charges unless third party has paid tax. Hotel-arranged third-party jungle safari services are taxable and attract service tax on the gross amount charged to in-house guests where no exclusion or exemption applies. If the third-party supplier charges and pays service tax to the hotel, the hotel may avail that tax as Cenvat credit and need not pay again; if the third party does not pay tax, the hotel remains liable on the gross receipts.