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Service
tax Notification No- 15/2007-ST, DT. 04/04/2007
Services provided by a tour operator to transport of passengers from one place
to another
Whereas, the Central Government is satisfied that a practice
was generally prevalent regarding levy of service tax (including non-levy
thereof) under section 66 of the Finance Act, 1994 (32 of 1994) (hereinafter
referred to as the Finance Act) on services provided by a tour operator
providing services in relation to transport of passengers from one place to
another (other than services provided in relation to package tour) operating
under a contract carriage permit issued by the appropriate transport authority
and that such services were liable to service tax under sub-clause (n) of clause
105 of section 65 of the Finance Act, which was not being levied according to
the said practice during the period commencing from the 1st day of April 2000
and ending with the 4th day of February 2004;
Now, therefore, in exercise of the powers conferred by section 11C of the
Central Excise Act 1944 (1 of 1944) read with section 83 of the Finance Act, the
Central government hereby directs that the service tax payable on services
provided by a tour operator providing services in relation to transport of
passengers from one place to another (other than services provided in relation
to package tour) operating under a contract carriage permit issued by the
appropriate transport authority, as is in excess of the service tax calculated
on a value which is equivalent to forty per cent. of the gross amount charged by
such service provider for providing the said taxable service, shall not be
required to be paid in respect of such taxable service on which the service tax
was not being levied during the aforesaid period in accordance with the said
practice.
[F. No. 354/180/2005-TRU](G.G. Pai)
Under Secretary to the Government of India