25th January 2016

To, 

All Members, 

Dear Colleagues, 

This is further to our circular sent yesterday regarding service tax.  

In order to avail CENVAT Credit by our tour operator members, we have requested the Presidents of FHRAI, HAI, Indian Heritage Hotel Association (IHHA), Hotel Mahasangh Delhi,  that all their members be advised that despite giving CPAI, MAPAI or APAI rates to the tour operators,  while billing, all hotels should give the bifurcation of the various taxes applied in the bill, so that CENVAT Credit of service tax could be availed by our tour operator members. 

While giving bifurcation, hotels need to ensure that following information is given on the bill/invoice:- 

• Name and address of the hotel

• Invoice number

• Invoice date 

• Service Tax number

• Bill in favour of  the tour operator with address who has/will be making the payment and not in the name of client 

• Service tax charged

• Krishi Kalyan Cess Charged

• Swachh Bharat Cess Charged

• In case food bill with accommodation, the food bill in original should be attached with the main bill. 

• Total Amount

Wherever the tour operators are on the credit list of various hotels, there is no problem as the bills would be received by them for payment. But in case where tour operators have to make the payment in advance, it has to be ensured by the hotels that either the invoice should be sent immediately after the receipt of the payment or definitely immediately after the departure of the client(s) so that CENVAT Credit could be availed by the tour operators.

Copies of our letters dated 18th January and 24th January 2017 written to President, FHRAI, HAI, IHHA and Hotel Mahasangh, Delhi are placed below for your information.    

You must ensure that for availing CENVAT Credit, all the above information is given on the bills received from the hotel. 

You are also advised to write similar letter to all your hotels, which you are using.  

With regards, 

Rajiv Mehra

Vice President   

 

24th  January 2017  

Mr. K. Syama Raju

President

Federation of Hotels and Restaurant of India 

B-82, 8th Floor, Himalaya House, 

23, K. G. Marg, 

New Delhi-110 001

 

Dear Mr. Syama Raju, 

Sub: CENVAT Credit available to tour operators against service tax levied by hotels w.e.f.

Greetings from IATO !

As you are aware that Department of Revenue, Ministry of Finance, Government of India vide notification no  4/2017 dated 12th January 2017 has increased the service tax on tour operators and have in turn allowed tour operators to take CENVAT credit on various services  including hotel accommodation and food etc. This will be effective from 22nd January 2017.

In this connection, I  would be grateful if you could kindly instruct all your hotel members that despite giving CPAI, MAPAI or APAI rates to the tour operators,  while billing, all hotels should give the bifurcation of the various taxes applied in the bill, so that CENVAT Credit of service tax could be availed by our tour operator members. 

While giving bifurcation, hotels need to ensure that following information is given on the bill/invoice:- 

• Name and address of the hotel

• Invoice number

• Invoice date 

• Service Tax number

• Bill in favour of  the tour operator with address who has/will be making the payment and not in the name of client 

• Service tax charged

• Krishi Kalyan Cess Charged

• Swachh Bharat Cess Charged

• In case food bill with accommodation, the food bill in original should be attached with the main bill. 

• Total Amount

Wherever the tour operators are on the credit list of various hotels, there is no problem as the bills would be received by them for payment. But in case where tour operators have to make the payment in advance, it has to be ensured by the hotels that either the invoice should be sent immediately after the receipt of the payment or definitely imemdiatley after the departure of the client(s) so that CENVAT Credit could be availed by the tour opeaators.

The above is very important,  otherwise it will be a loss for the tour operators as they will not be able to avail the CENVAT credit, if bills are not received by them from the hotels in time. 

A copy of the circular which you send to your members, may also be provided to us for circulation to our members. 

A line in confirmation will be highly appreciated. This may kindly be given a priority attention as time is short. 

Thanking you and with best regards

Sincerely, 

 

Pronab Sarkar

President 

 

 

18th January 2017  

Mr. K. Syama Raju

President

Federation of Hotels and Restaurant of India 

B-82, 8th Floor, Himalaya House, 

23, K. G. Marg, 

New Delhi-110 001

Dear Mr. Syama Raju, 

Sub: CENVAT Credit available to tour operators against service tax levied by hotels w.e.f.

Greetings from IATO !

As you are aware that Department of Revenue, Ministry of Finance, Government of India vide notification no  4/2017 dated 12th January 2017 has increased the service tax on tour operators and have in turn allowed tour operators to take CENVAT credit on various services  including hotel accommodation and food etc. This will be effective from 22nd January 2017.

In this connection, I  would be grateful if you could kindly instruct all your hotel members that despite giving CPAI, MAPAI or APAI rates to the tour operators,  while billing, all hotels should give the bifurcation of the various taxes applied in the bill, so that CENVAT Credit of service tax could be availed by our tour operator members. 

Wherever the tour operators are on the credit list of various hotels, there is no problem as the bills would be received by them for payment. But in case where tour operators have to make the payment in advance, it has to be ensured by the hotels that either the invoice should be sent immediately after the receipt of the payment or definitely immediately after the departure of the client(s) so that CENVAT Credit could be availed by the tour operators.

The above is very important,  otherwise it will be a loss for the tour operators as they will not be able to avail the CENVAT credit, if bills are not received by them from the hotels in time. 

A copy of the circular which you send to your members, may also be provided to us for circulation to our members. 

A line in confirmation will be highly appreciated. This may kindly be given a priority attention as time is short. 

Thanking you and with best regards

Sincerely, 

Pronab Sarkar

President