How much tax should be charged on service provided by a tour operator? Whether tax should be charged on only tour package or it should be charged on other services such as:
- Taxi booking services by a tour operator,
- Vehicle provided by tour operator,
- Guide provided by a tour operator
Supply of service by a tour operator are taxed at 5% without ITC. Input tax credit is not available to tour operators. They cannot take input tax credit of tax paid on receipt of inward supplies.
Taxi booking service or any other service mentioned by you are also covered under same tax rate as these are the services which are provided by a tour operator.
However if services by a tour operator are provided to a foreign national outside of India, then such service is exempted from tax.
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