Exemption for services provided in relation to arranging or booking accommodation by a Tour operator. - 040/97 - Service Tax

Rescinded by Notification No. 2/2006 - Service Tax dated 1/3/2006

Exemption for services provided in relation to arranging or booking accommodation by a Tour operator.

 [Notification No. 40/97-ST, dated 22-8-1997]

[As amended by NTF. NO. 12/2004-ST, Dated. 10-09-2004]

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 operator 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:

^1[Provided that the said exemption shall not apply in such cases where-

(a) the invoice, bill or challan issued by the tour operator to the client only includes the service charges for arranging or booking accommodation for any person in relation to a tour and does not include the cost of such accommodation; or

(b) credit of duty paid on inputs or capital goods has been taken under the provisions of the Cenvat Credit Rules, 2004; or

(c) such tour operator has availed the benefit under the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 12/2003-Service Tax, dated the 20th June, 2003 [G.S.R. 503 (E), dated the 20th June, 2003].]

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

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Note :

1. Has been substituted vide Notification No. 12/2004 dated 10/9/2004, before it was read as, "Provided that no exemption from the taxable service provided by the tour operator shall be available in case the bill issued to the client only includes the service charges for arranging or booking accommodation for any person in relation to a tour and does not include the cost of such accommodation."