9911796707
TMI BlogAir transport of such passenger embarking in India for domestic journey or international journeyX X X X Extracts X X X X X X X X Extracts X X X X ..... aircraft operator Who is liable to pay service tax Any aircraft operator who is providing services Meaning of Aircraft Operator - 65(3b) "aircraft operator" means any person who provides the service of transport of goods or passengers by aircraft; Meaning of CustomsAirport - 65(35a) "customs airport" means an airport appointed as such under clause (a) of sub- section (1) of section 7 of the Customs Act, 1962; Meaning of Passenger - 65(77c) "passenger" means any person boarding an aircraft in India for performing domestic journey or international journey. Meaning of International journey - 65(56a) "international journey" in relation to a passenger, means his journey from any customs airport on board any aircraf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purposes of this sub-clause, economy class in an aircraft meant for scheduled air transport of passengers means, (i) where there is more than one class of travel, the class attracting the lowest standard fare; or (ii) where there is only one class of travel, that class. Explanation 2. For the purposes of this sub-clause, in an aircraft meant for non- scheduled air transport of passengers, no class of travel shall be treated as economy class;]" 2. The meaning of passenger u/s 65(77c) has been substituted vide Finance Act, 2010 with effect from 1.7.2010, prior to substitution it was read as, "["passenger" means any person boarding, at any customs airport, an aircraft for performing an international journey, but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... York). Whether service tax would be liable in such case on the value indicated in the ticket for the entire journey or only on that part of the value attributable to the first sector (Mumbai-Dubai) of the journey? Clarification Aim of the passenger is to travel from Mumbai to New York. Actual destination of the international journey is the criterion to decide the value of the service (in this case, New York). Stopover / transfer at intermediate airports, being merely incidental and part of the main journey, is of no relevance or consequence for levy of service tax under section 65(105)(zzzo) read with section 66. Service tax in such cases is leviable on the total consideration of a single composite service relating to the entire j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sue - 086.04 / 23.08.07 Whether ticket issued outside India for an international journey commencing from India (say Delhi-London) is liable to service tax? Clarification Service tax is payable by the service provider, namely aircraft operator, for the taxable service provided. Place of purchase/ issue of ticket is of no relevance or consequence to determine the levy of service tax under section 65(105)(zzzo) read with section 66. Service tax is leviable as long as the passenger embarks in India for an international journey, in any class other than economy class. Issue - 086.05 / 23.08.07 Whether service tax is liable on the total value of the ticket or only half the value of the ticket in the case of round trip / return ticke ..... X X X X Extracts X X X X X X X X Extracts X X X X
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