Case Law Details
In re Crown Tours & Travelers (GST AAR Rajasthan)
Whether the rate of 5% under heading 9985(i) is applicable on transaction which the Applicant intents to undertake wherein a single invoice is raised in respect of all the services i.e. local transportation services along-with services like sightseeing, tour guide, elephant ride etc., provided by the Applicant to The Main Tour Operator?
Notification No. 11/2017-Central Tax (rate) dated 28.06.2017 defines Tour Operator as “any person engaged in the business of planning, scheduling, organizing, arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any mode of transport, and includes any person engaged in the business of operating tours.”.
Further, the above said Notification also delineates two conditions for a tour operator;
1. Provided that credit of input tax charged on goods and services used in supplying the service /, other than the input tax credit of input service in the same line of business (i.e. tour operator service procured from another tour operator)]48 has not been taken [Please refer to Explanation no.(IV)].
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my query is my purchase bill tour operator and sale is another tour operator. 5% tax purhcase bill and sale bill same 5% tax pass on. so, can i take eligible for itc
This might be answered earlier however, let us take an example
We are purchasing a consolidated package from a B2B tour provider let say Rs. 10,500 which reflects as all taxes included.
This amount includes the comission we are supposed to receive. We collect the entire amount of Rs.10,500 and remit to B2B Partner.
Once the full amount is recieved the commission value gets transfered to our business wallet.
Now as per GST 5 % is already paid by the B2B Partner including commission. Do we again pay 18 % on the commission amount lets say Rs.500.
Also , how do we pass a contra entry to nullyfy the GST impact in the books.