TaxTMI 
TaxTMI 
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?
Service Tax on Jungle Drive
05 Aug 2012 
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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. (AI Summary)
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. (AI Summary)