Rule 11- Passenger Transportation Services

1.  What is the place of provision of passenger transportation services?

The place of provision of a passenger transportation service is the place where the passenger embarks on the conveyance for a continuous journey.

2.  What does a “continuous journey” mean?

A “continuous journey” means a journey for which:-

(i) a single ticket has been issued for the entire journey; or

(ii) more than one ticket or invoice has been issued for the journey, by one service provider, or by an agent on behalf of more than one service providers, at the same time, and there is no scheduled stopover in the journey

3 What is a “stopover”?

“Stopover” means a place where a passenger disembarks from the conveyance

 4.  The Table below contains illustrations which explain the principle enunciated in this Rule.

Illustrations

S. No. Journey Place of Provision Taxability
Single Ticket
1 Mumbai-Delhi Mumbai Yes, Mumbai, being the place of only embarkation
2 Mumbai-Delhi-Mumbai Mumbai Yes, Mumbai, being the place                of            embarkation where     the          continuous
journey begins
3 Mumbai-Delhi-London- Delhi-London Mumbai -do-
4 Delhi-London-New York- London-New York Delhi Yes, New Delhi, being the place of provision for continuous journey with single ticket
5 Delhi-London-New York Delhi -do-
6 New York-London-Delhi New York No, New York is place of provision for continuous journey with single ticket
7 New York-London-Delhi- Mumbai-Delhi-London­New York New York -do-
More than one ticket for a journey (issued by a single service provider, or by a single agent, for more than one service providers)
1 (a) Delhi-Bangkok-Delhi

(b) Bangkok-Bali- Bangkok

Delhi is  place of provision for journey
(a); Bangkok is place of provision for journey (b)
Journey (a) is taxable since place of provision is in taxable territory;

Journey  (b)  is not taxable  since place      of provision  is    outside taxable territory

2

 

(a) Delhi-New York-Delhi (b) New York-Boston-New York Delhi  is place      of provision for journey

(a); New York is place of provision for journey (b)

Journey (a) is taxable since place of provision  is in taxable  territory;

Journey  (b)  is  not  taxable  since place      of  provision  is  not   in taxable territory.

3 (a)           London-Delhi-
London(b)Delhi-Chandigarh(c) Chandigarh-Amritsar (d) Amritsar-Delhi
London  is  place      of provision  for journey Delhi is place  of provision for journey Chandigarh is place of provision for journey (c); Amritsar is place of provision for journey (d) Journey  (a) is not  taxable  since       place      of provision   is   outside taxable territory;

Journeys (b), (c) and (d) are taxable since place of provision is in taxable territory.

4 a) Jammu-Delhi-Jammu

b) Delhi-Bangkok-Delhi

Jammu  is             place      of provision               for journey

(a);          Delhi is place        of provision               for journey
(b)

Journey (a)is not taxable since place of provision is outside taxable territory

Journey (b) is taxable, since place of provision is in taxable territory

5 a)Jammu-Delhi

b) Delhi-Bangkok-Delhi

c) Delhi-Lucknow

d) Lucknow-Jammu

Jammu  is  place      of provision  for journey Delhi is place        of provisio  for journey

Delhi is place of provision               for journey
(c); Lucknow is place of provision  for journey (d)

Journey  (a) is not taxable  since       place      of provision is not in taxable territory;

Journeys (b), (c) and (d) are taxable since place of provision is in taxable territory.

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Category : Service Tax (3355)
Type : Articles (16737)
Tags : Budget (1956)

One response to “Service tax Rule 11- Passenger Transportation Services”

  1. Meghana says:

    Hi, was wondering in what kind of a situation, separate tickets would be issued and they would form part of a ‘continuous journey’:

    “…by an agent on behalf of more than one service providers, at the same time, and there is no scheduled stopover in the journey”.

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