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Tour Operators to Business Auxiliary Services

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..... Tour Operators to Business Auxiliary Services
Query (Issue) Started By: - RAHUL DAS Dated:- 31-3-2017 Last Reply Date:- 1-4-2017 Service Tax
Got 3 Replies
Service Tax
NEED URGENT REPLY Dear All, Iam working in a Tour Operator Company. As there is a change in Service Tax rate, we have lost our customers due to high cost. and our business was in a very bad condition. And against thi .....

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..... s, our management has decided to change our service tax category as tour operator to business auxiliary services. So, now we will be charged 15% service tax on our markup. Kindly, provide advice on the above change and how it will affect our business (as we are accredited tour operators of both kerala govt and india govt.) Hopefully, Rahul Das. Reply By KASTURI SETHI: The Reply: Dear Querist .....

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..... , You cannot change classification/category of service. Definition s of services have been omitted w.e.f. 1.7.12. Accouning codes of various services under erstwhile categories are for statistical purpose. Service Tax is to be paid on the nature of service as defined under Section 65 B (44) of the Finance Act and various notifications providing abatements/benefits of RCM/Service portion. You are t .....

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..... o avail abatements/RCM/other benefits as per notifications. You have no volition to waive abatements or RCM. Reply By Ganeshan Kalyani: The Reply: I fully agree with Sri Kasturi Sir 's view. One cannot change the nature of service to avail any kind of benefit. This will cost you heavy in future. Thanks. Reply By MARIAPPAN GOVINDARAJAN: The Reply: If GST comes into effect it is expected th .....

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..... at the tax rate for services up to 18%.
Discussion Forum - Knowledge Sharing .....

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