Change in the scope of journey by air – corresponding change is provisions of section 65(77c) required

Vide Finance Bill, 2010 provisions of Section 65(105)(zzzo) are proposed to be amendment with a view to levy service tax on passengers embarking in India for Domestic or International journey. The definition of passenger is provided in Section 65(77c) of the Finance Act, 1994 means any person boarding an aircraft from Customs Airport for undertaking an international journey. It is stated that unless provisions of Section 65(77c) are also amended to include passengers undertaking domestic journey, tax cannot be levied on the basis of amendment in Section 65(105)(zzzo) of the Act. It appears to be a lapse while drafting the Finance Bill, 2010.

Courtesy

Anuj Bansal