Service Tax on Tour Operator and Event Management

[AMIT JAIN, Advocate]

Respected Sir,

What is the procedure to calculate of Service Tax on Tour Operator and Event Management Business.

[Rama Krishana]

If you are eligible for benefits under Abatement Notification, you may reduce the same from the total value as per the rate prescribed therein. On the remaining amount, you would be required to pay service tax at applicable rate.

AI Summary

Abatement entitlement reduces taxable value; service tax is payable on the residual for tour operator and event management services. Where a provider of tour operator or event management services is eligible for an abatement notification, apply the prescribed abatement rate to reduce the gross value; the remaining amount is the taxable value on which service tax is payable at the applicable rate.