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NOTIFICATION No. 40/97-ST, dated 22-8-1997 

In exercise of the powers conferred by section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts taxable service provided by a tour operator from so much of the service tax leviable on such operator, as is in excess of the amount of service tax calculated on ten per cent. Of the gross amount charged from any person by such operator for the services provided in relation to a tour , if the tour is providing services solely of arranging or booking accommodation for any person in relation to a tour and the bill issued for this purpose indicates that it is towards charges for such accommodation:

2. This notification shall come into force on the 1st day of September, 1997.

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