Mr. Raju, an USA citizen booked a package tour with 'Four Seasons Travel Agency'. The package includes airfare, accommodation, food, sightseeing, etc. for a consolidated amount of ₹ 3,50,000 for 9 nights and 10 days to:

Tour operator service, which is performed partly in India and partly outside India, supplied by a tour operator to a foreign tourist, to the extent of the value of the tour operator service which is performed outside India is exempt. Any duration of time equal to or exceeding 12 hours shall be considered as one full day and any duration of time less than 12 hours shall be taken as half a day. Tour started on 21.01.2025 at 4:00 PM, duration is less than 12 hours so half a day is considered., Total days in India = 6.5 days Place No. of Days Jaipur 1.5 days 21.01.2025 to 22.01.2025 Jaisalmer 3 days 23.01.2025 to 25.01.2025 Agra 2 days 26.01.2025 to 27.01.2025 Total 6.5 days Days in Dubai = 3 Days (28.01.2025 to 30.01.2025) On 30.01.2025 tour ended on 1:00 PM which is more than 12 hours so full day considered. Exempt Value of supply = Consideration for tour operated outside India = total consideration for tour in proportion of number of days for which the tour is performed outside India has to the total number of days comprising the tour. Therefore, Value of exempt supply = ₹ 1,10,526 ₹ 3,50,000 * 3/9.5 = ₹ 1,10,526 or 50% of the total consideration charged for the entire tour (₹ 3,50,000 * 50%) = ₹ 1,75,000 whichever is less. Accordingly, The value of taxable supply (₹ 3,50,000 - ₹ 1,10,526) = ₹ 2,39,474