Given a set $X$, I've seen people write the action of a permutation $ \sigma \in S_{n}$ on an $n$-tuple of elements of $X$ as $$ \;\; \sigma (x_{1},...,x_{n})=(x_{\sigma^{-1}(1)},...,x_{\sigma^{-1}(n)}). \;\;$$ But this does not seem to me to give a left action of $S_{n}$ on $n$-tuples, since $$\sigma(\tau(x_{1},...,x_{n}))=\sigma(x_{\tau^{-1}(1)},...,x_{\tau^{-1}(n)})=(x_{\sigma^{-1}\tau^{-1}(1)},...,x_{\sigma^{-1}\tau^{-1}(n)})$$ is not in general equal to $$(\sigma \tau)(x_{1},...,x_{n})=(x_{(\sigma \tau)^{-1}(1)},...,x_{(\sigma \tau)^{-1}(n)})=(x_{\tau^{-1}\sigma^{-1}(1)},...,x_{\tau^{-1}\sigma^{-1}(n)}).$$
On the other hand, if we don't write out symbols, but think of a tuple as a map from the $n$-element set $\{1,...,n\}$ to $X$, then the first formula seems to make sense: the $\sigma^{-1}$ comes from precomposing with the right action of $S_{n}$ on the set $\{1,...,n\}$ determined by the left action of $S_{n}$ on $\{1,...,n\}$, where we use the convention that functions act on the left of elements.
So the question is whether the first formula defines a left or a right action on tuples. The symbols seem to suggest a right action while interpreting tuples as maps seems to suggest a left action. I think that in my formulas above I must be getting confused.
The first formula defines a left action on tuples. Note that $\sigma \in S_n$ acts on the positions, not on the indices. You did wrong in computing $\sigma\bigl(\tau(x_1, \ldots, x_n)\bigr)$.
We have $\tau(x_1, \ldots, x_n) = (x_{\tau^{-1}(1)}, \ldots, x_{\tau^{-1}(n)})$ by definition. Now $\sigma$ acts from the left on this tuple. Acting on a tuple, $\sigma$ "moves" the entry in position $\sigma^{-1}(1)$ to the front, right? But which $x_j$ is that? If we write $y_i = x_{\tau^{-1}(i)}$ we have $$ \sigma(x_{\tau^{-1}(1)}, \ldots, x_{\tau^{-1}(n)}) = \sigma(y_1, \ldots, y_n) = (y_{\sigma^{-1}(1)}, \ldots, y_{\sigma^{-1}(n)}) $$ So the new first entry is $y_{\sigma^{-1}(1)} = x_{\tau^{-1}\sigma^{-1}(1)}$, giving $$ \sigma\bigl(\tau(x_1, \ldots, x_n)\bigr) = (x_{\tau^{-1}\sigma^{-1}(1)}, \ldots, x_{\tau^{-1}\sigma^{-1}(n)}) = (x_{(\sigma\tau)^{-1}(1)}, \ldots, x_{(\sigma\tau)^{-1}(n)}). $$