S.Tax on package offer by Hotel., Service Tax

[Pradeep Dongre]

Sir,

My hotel have received client from Russia . W e have offered the package i.e airport lifting/ stay in hotel/food/and providing car and all for  other visits to be made by them for the purpose they have come hear plus sightseeing all this for 15 days. The package amount is Rs.29 lakhs received  in foreign currency. Will they have to be charged service tax and what notif. is there to claim exemption from STax as they have paid in foreign currency. Some say there is exemptioin if received in foreign currency.Please advice.Regards

Pradip 

Posts / Replies

[Brijesh Verma]

AS per place of provision rules...services in relation to Hotel accommodation shall be treated to have been provided in India only and therefore the question regarding ST Exemption doesn't arise. 

Further, as far as taxability is concerned, the tax shall be levied after taking abatement as per NN 26/2012-ST dated 20.06.2012