Abatement - Services by a tour operator - Service Tax Practice Manual / Ready Reckoner - Service Tax

Sr. No. 11 Services by a tour operator (W.e.f.: 1.7.2012) Scope of abated service - Notification no 26/2012-ST dated 20.6.2012 From 1.7.2012 to 30.9.2014 11. Services by a tour operator in relation to,- (i) a package tour Effective Rate of tax : 25% of Service Tax prescribed u/s 66B Conditions : (a) CENVAT credit on inputs, capital goods and input services other used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004 . (b) The bill issued for this purpose indicates that it is inclusive of charges for such a tour. (ii) a tour, if the tour operator is providing services solely of arranging or booking accommodation for any person in relation to a tour Effective Rate of tax : 10% of Service Tax prescribed u/s 66B Conditions : a) CENVAT credit on inputs, capital goods and input services used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004 . (b) The invoice, bill or challan issued indicates that it is towards the charges for such accommodation. (c) This exemption shall not apply in such cases where the invoice, bill or challan issued by the tour operator, in relation to a tour, only includes the service charges for arranging or booking accommodation for any person and does not include the cost of such accommodation. (iii) any services other than specified at (i) and (ii) above. Effective Rate of tax : 40% of Service Tax prescribed u/s 66B Conditions : (a) CENVAT credit on inputs, capital goods and input services used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004 . (b)The bill issued indicates that the amount charged in the bill is the gross amount charged for such a tour. From 1.10.2014 to 31.3.2016 - Not. 08/2016 - Dated 1-3-2016 11. Services by a tour operator in relation to,- (i) a package tour Effective Rate of tax : 25% of Service Tax prescribed u/s 66B Conditions : (a) CENVAT credit on inputs, capital goods and input services other than the input service of a tour operator, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004 . (b) The bill issued for this purpose indicates that it is inclusive of charges for such a tour. (ii) a tour, if the tour operator is providing services solely of arranging or booking accommodation for any person in relation to a tour Effective Rate of tax : 10% of Service Tax prescribed u/s 66B Conditions :(a) CENVAT credit on inputs, capital goods and input services other than the input service of a tour operator, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004 . (b) The invoice, bill or challan issued indicates that it is towards the charges for such accommodation. (c) This exemption shall not apply in such cases where the invoice, bill or challan issued by the tour operator, in relation to a tour, only includes the service charges for arranging or booking accommodation for any person and does not include the cost of such accommodation. (iii) any services other than specified at (i) and (ii) above. Effective Rate of tax : 40% of Service Tax prescribed u/s 66B Conditions (a) CENVAT credit on inputs, capital goods and input services other than the input service of a tour operator, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004 . (b)The bill issued indicates that the amount charged in the bill is the gross amount charged for such a tour. From 1.4.2016 - Not. 08/2016 - Dated 1-3-2016 11. Services by a tour operator in relation to,- (i) a tour, only for the purpose of arranging or booking accommodation for any person Effective Rate of tax : 10% of Service Tax prescribed u/s 66B Conditions: (a) CENVAT credit on inputs, capital goods and input services other than input services of a tour operator, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004. (b) The invoice, bill or challan issued indicates that it is towards the charges for such accommodation. (iii) This exemption shall not apply in such cases where the invoice, bill or challan issued by the tour operator, in relation to a tour, includes only the service charges for arranging or booking accommodation for any person but does not include the cost of such accommodation. (ii) tours other than (i) above Effective Rate of tax : 30% of Service Tax prescribed u/s 66B Conditions: (a) CENVAT credit on inputs, capital goods and input services other than input services of a tour operator, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004. (b) The bill issued for this purpose indicates that it is inclusive of charges for such a tour and the amount charged in the bill is the gross amount charged for such a tour. Definitions and meaning: c. tour operator means any person engaged in the business of planning, scheduling, organizing, arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any mode of transport, and includes any person engaged in the business of operating tours, - notification no 26/2012-ST dated 20/6/12