Service tax liabilty on private tour operators providing hajj package

[Aasia Hasan]

In Jan 2013 a press release was announced with Registration condition for private tour operators for FY -2013-14. One of the condition is that the PTO must have paid service tax for FY -2010-11 & 2011-12.

As far as I know on PTO dealing in Hajj Packages are exempt  vide No. 117/11/2009 - ST.

Even if we ignore this Circular then at what % service tax is to be paid?Any penalty is involved in this case?

Futher, vide  Notification No. 13/2012- , Service tax is payable at 25% of the gross turnover under packaged tour.

As the last date for submitting documents for Registration is end of march.What should I do in this case.

should I pay the service tax ? If yes at what rate?

 I also heard that some of the private tour operaors has filed a case against this .

Regards

CA Aasia

 

[Mahir S]

As such private tour operators are not covered under the Negative list of servies, hence service tax is required to be paid for such services. The service tax is to be paid as any other packaged tour undertaken by various tour operators within and outside india.

If service tax is not yet paid for the past period,  then the same can now be paid under the recently announced Voluntary Compliance Encouragement Scheme, 2013 FOR NON FILERS AND STOP FILERS, under which no Interest and Penalty shall be imposed.

[Aasia Hasan]

then what about exemption notification No. 117/11/2009 -?

AI Summary

Service tax liability for private tour operators may apply to Hajj packages; voluntary compliance can regularise past non filings. The query concerns whether private tour operators selling Hajj packages must pay service tax despite an exemption notification, in light of a registration condition requiring prior payment and a subsequent notification treating packaged tours as taxable at a fraction of gross turnover. The reply advised that PTOs are not in the negative list and thus service tax applies like other packaged tours, and that past liabilities may be regularised under the Voluntary Compliance Encouragement Scheme, 2013 without interest or penalty.