Service Tax on tour operators has been doubled
- CBEC amends service tax rules to clarify the tax will be on entire amount, if customer directly pays to these aggregators
- If customer pays only commission to aggregators and other charges to hotel, tax liability on aggregators will be on commission only
- Currently, customer pays entire amount to aggregators because they give discounts
- International players out of service tax net
- Service tax is payable at 6-15%, depending on the kind of services provided by aggregators
- Rules effective from January 22. Aggregators have started charging more to accommodate for service tax
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