The Outbound Tour Operators Association of lndia (OTOAl) has written to Union Finance Minister Arun Jaitley regarding the recent amendment in Service Tax, which would impact outbound tour markets. Explaining how the agents will not be given any input credit on the tax they pay, OTOAI has said that this would hamper the growth of the tourism industry. OTOAI has urged the finance minister to consider that the abatement available to tour operator should be amended to provide a choice to the tour operator to opt for a lower abatement along with CENVAT credit on input services or opt for a higher abatement without claiming the CENVAT credit on input services. The letter undersigned by OTOAI President Guldeep Singh Sahni reads, “As the actual margin earned by the tour operators is only 3 to 5 per cent, the increase in taxable value to 60 per cent will significantly negatively impact the sector and increase the cost of outbound tours.”
Read More »240 delegates at OTOAI Convention Bali
The second edition of OTOAI Convention opened in Bali at the Pan Pacific Nirwana Bali Resort, Indonesia with outbound travel agents and OTOAI national committee in full attendance. Riaz Munshi opened the Convention and spoke about the theme ‘India Outbound: the game changer’ and why they chose Bali as the venue for the convention. OTOAI President Guldeep Singh Sahni spoke about what was in store for the delegates and the topics that will be touched upon the following day, including the tax issues. With 240 delegates, including overseas participants, the three-day convention will witness dedicated meetings and business sessions, and two days will be spent on post-convention fam trips.
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