TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY DATED THE 4TH APRIL, 2007
14 Chaitra, 1929 (Saka)
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
Regarding service tax payable on services provided by tour operator
New Delhi, the Date: 4th April, 2007.
14 Chaitra, 1929 (Saka)
Notification No.15/2007-Service Tax
G.S.R. (E).- Whereas, the Central Government is satisfied that a practice was generally prevalent regarding levy of service tax (including non-levy thereof) under section 66 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act) on services provided by a tour operator providing services in relation to transport of passengers from one place to another (other than services provided in relation to package tour) operating under a contract carriage permit issued by the appropriate transport authority and that such services were liable to service tax under sub-clause (n) of clause 105 of section 65 of the Finance Act, which was not being levied according to the said practice during the period commencing from the 1st day of April 2000 and ending with the 4th day of February 2004;
Now, therefore, in exercise of the powers conferred by section 11C of the Central Excise Act 1944 (1 of 1944) read with section 83 of the Finance Act, the Central government hereby directs that the service tax payable on services provided by a tour operator providing services in relation to transport of passengers from one place to another (other than services provided in relation to package tour) operating under a contract carriage permit issued by the appropriate transport authority, as is in excess of the service tax calculated on a value which is equivalent to forty per cent. of the gross amount charged by such service provider for providing the said taxable service, shall not be required to be paid in respect of such taxable service on which the service tax was not being levied during the aforesaid period in accordance with the said practice.
[F. No. 354/180/2005-TRU]
(G.G. Pai)
Under Secretary to the Government of India
