• Whether a service is liable for Service tax - Outbound tours

Being a travel agent providing outbound tours 

Explanation -  outbound tours arranged by Indian travel agent through a foreign supplier. Customer will get service at foreign for the payment made to Indian travel agent(We are Indian travel agents).

We travel agent from India will make payments in return to those foreign suppliers in foreign currency for such services rendered.

Kindly suggest us whether it is taxable, if so am i supposed to collect ST from them and who is liable to remit the same to department. Also whether any abatement is available on the same.

Kindly help us.
Asked 8 years ago in Service Tax

The service tax is destination based tax and it will be taxed where the service is consumed. Further, in this case service tax is leviable at destination which is outside India and hence the service is not taxable in your case.

Vijay N. Kale
CA, Hyderabad
248 Answers
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