Holiday vouchers, Service Tax

[kamaljit singh]

We are in the business of sale of holiday vouchers to corporate clients.

These vouchers are used by them as freebees to incentivize sale of products to end customer. Like you buy a samsung refrigrator and you get two night hotel accomodation on a choice of over 40 locations

We entertain and book rooms for all the customers who apply for accomdation within the stipulated time.

We have been paying service tax under category of tour operator but now the service tax department is putting us in the category of business auxillary services are they correct or if no help me with a logic.

Though this is not a mandatory service for running business of the corporate clients. Sometimes they use holiday vouchers, physical gift  or extended warranty or scratch cards to incentivize the sales

 

 

Posts / Replies

[Naveed S]

 

My personal view is that you are not at all liable for service tax.