Please Help: Tour operator service
Posted Date : 06-May-2012 , 11:31:32 am | Posted By: Iqbal Singh Grover
Category :
Service Tax | Answers :
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A person is provided package tours to his customers in groups.. Each group goes to a foreign location, say Australia.. The package includes all services like booking hotels, flight tickets, local travel, sight seeing etc..
Will ST be chargeable on this ??
Would there be any change once the budget is passed ?
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Answers:
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 Answer by: Ashish Chaudhary |
| If the tour is wholly performed outside India and payment is received in convertible foreign currency, no liability to charge service tax. If tour is performed partly in India and partly outside India, service tax applicable to the extent of tour operated in India. (12.36% on 25% of invoice value in case of packaged tour)
After budget amendment, liability to pay service tax would depend on Place of provision of Service Rules which are yet in draft stage. As per draft rules, ST liability would arise where location of tour operator as well as tourists is in India.
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| Answer by: PRIYANKA |
| completely agree with the answer given by Mr. ashish.
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