TMI BlogImposition of Service Tax on Tour OperatorsX X X X Extracts X X X X X X X X Extracts X X X X ..... for guidance of Public / Trade would be beneficial. 3.TOUR OPERATOR 3.1 As per section 88 of the Finance Act, 1997, 'tour operators' means a person who holds a tourist permit granted under the rules made under the Motor Vehicles Act, 1988 and tour means a journey from one place to another irrespective of the distance between such places and the taxable service means any service provided to any person by a tour operator in relation to a tour the rate of service tax is 5% and the value of taxable service in relation to the service provided by a tour operator to a client, shall be the gross amount charged by such operator from the client for services in relation to a tour and includes the charges for any accommodation, food or any incl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red under this levy. However State Roadways Corporations who ply passengers in the neighboring State, will not be covered by the levy as they do not require a tourist permit but operate on the strength of agreements between the concerned State authorities. 3.4 The services rendered by the tour operator may be only for providing transport service within or outside the town, city or states territorial limits. The services rendered by the tour operators may only be limited to providing transport service in relation to a tour or it may also include host of other services as in case of a package tour. The services provided by such a tour operator may also include, apart from providing the basic service of transportation from one place to anoth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Notification No. 39 / 97 - ST refers). Further an abatement of 90% from the gross amount charged to the client has been provided where the tour operator provides the services solely of booking or arranging accommodation and the bill issued for this purpose includes cost of such accommodation (Notification No. 40 / 97-ST refers). However, this abatement will not be allowed in case the bill issued does not include the cost of such accommodation. 3.6 Service tax on services rendered by tour operators is only on services rendered in India in respect of a tour within Indian territory. Services rendered by tour operators in respect of out-bound tourism i.e. for tours abroad, do not attract service tax. In case of a composite tour which combine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessees will apply for registration in from ST-1 (Annexure-I). An acknowledgement will be provided on the duplicate copy of the ST-1 form by the Superintendent of Central Excise (Service Tax) in Room No. 254, CR Building, I.P. Estate, New Delhi. Registration No. will be allotted on receipt of their application. 4.4 Payment of Service Tax Rule 6 of the Service Tax Rules, 1994, deals with the payment of service tax. The service Tax will be deposited under Head 0044, in from TR-6 in yellow colour as amended vide Service Tax Circular No. 17 / 11 /96 dated 24.10.96 (a copy of which is enclosed as Annexure-II) in any of the bank branches, at present authorized to collect Central Excise Duties within the jurisdiction of Commissionerat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of From TR-6 for the months covered in the quarter. 4.7 The assessment shall be completed on the basis of the particulars furnished in the quarterly return ST-3 and ST-3A, by the said Central Excise Officer. The triplicate copy of the quarterly return so assessed shall be returned to the assessee with assessment memorandum. In cases where the service tax assessed is more than the service tax self determined and paid by the amount of interest determined and baid by the assessee, the assessee shall pay the deficiency along with the amount of interest determined thereon within 10 days of the receipt of the copy of the quarterly return from the Central Excise Officer. The assessee may apply for refund, whenever he has paid service tax in exce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce with the provisions of sub-section (II), shall not withstanding such failure be liable to pay such tax such tax to the credit of the Central Government within SEVENTY FIVE DAYS from the end of the month in which the service was rendered. e) Quarterly Return filed by the assessee (para 4.7 above will be assessed by the Superintendent of Central Excise (Service Tax). f) For the purpose of provisional assessment whenever the Asstt. Commissioner will make an order for provisional assessment for the tax, on request being received in writing from the Assessee. g) The powers of Assessment under Section 72, 73, 74 of Chapter V of the Finance Act, 1994 dealing with best judgment Assessment, value of taxable service, escaping assessment, re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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