Friday, 20 January 2017

Service tax rate amended for tour operator

Service tax rate amended for tour operator as FLAT rate of 9% will be charged for package tour and hotel booking from 22nd January, 2017.
Notification of the Government is attached herewith for reference.

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%
------------------------------------------
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. Rikks Tourism has provided services of Rs. 100 then total Bill amount will be Rs. 100+9% = Rs. 109.

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