Tour operators will have to pay a service tax on 60 per cent of the amount they bill the customer from January 22, according to a government notification.
Earlier, tour operators offering a package tour had to pay service tax on 25 per cent of the bill amount, on 10 per cent of the bill amount if the tour operator only arranged or booked accommodation for a person in relation to a tour, and on 40 per cent of the bill amount if any other tour-related services were offered.
That means, Service tax rate amended for tour operator as FLAT rate of 9% will be charged for total package tour and hotel booking from 22nd January, 2017.
In brief , for any kind of booking, there will be Flat service Tax rate of 9% (included swach bharat cess & krishi kalyan cess).
Bifurcation will be :
Service Tax = 8.40%
Swacch bharat Cess = 0.30%
Krishi Kalyan Cess = 0.30%
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Total Service Tax = 9.00 %
Please note that any invoice raise on or after 22nd Jan 2017 will have Total 9% service Tax.
e.g. ABC Tourism has provided services of Rs. 100 then total Bill amount will be Rs. 100+9% = Rs. 109.
