Amendment in Abatement on Services related to Tour & Travels

The Service Tax to be calculated on a value which is equivalent to a percentage specified in the corresponding entry in column (3) of the said Table. The New Table of Taxable Value of Various Services related to tour & travels  after the abatement is:

Table

Sl.
No.
Description of taxable
service
Percent-

age

Conditions
(1) (2) (3) (4)
1

Services in relation to financial leasing including hire purchase

10 Nil.
2

Transport of goods by rail

30

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.

3

Transport of passengers, with or without accompanied belongings by rail

30 Same as above
4

Bundled service by way of supply of food or any other article of human consumption or any drink, in a premises ( including hotel, convention center, club, pandal, shamianaor any other place, specially arranged for organizing a function) together with renting of such premises

70

(i) CENVAT credit on any goods classifiable under Chapters 1 to 22 of the Central Excise Tariff Act, 1985 (5 of 1986) used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.

5

Transport of passengers by air, with or without accompanied belongings in

(i) economy class

(ii) other than economy class

40

60

CENVAT credit on inputs and capital goods, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.”;

6

Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes.

60 Same as above.
7

Services of goods transport agency in relation to transportation of goods.

30

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.

8 OMITTED
9

Renting of any motor vehicle designed to carry passengers

30 Same as above.
10 Transport of goods in a vessel 50 Same as above.
11 Services  by a tour operator in relation to,-

(i)  a package tour

25 (i) 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.

(ii) 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

10

(i) 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.

(ii) 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 orchallan 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.

40

(i) 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.

(ii)The bill issued indicates that the amount charged in the bill is the gross amount charged for such a tour.

12.

Construction of a complex, building, civil structure or a part thereof, intended for a sale to a buyer, wholly or partly except where entire consideration is received after issuance of completion certificate by the competent authority

25

(i) CENVAT credit on inputs used for providing the taxable service has not been taken under the provisions of the CENVAT Credit Rules, 2004.

(ii)The value of land is included in the amount charged from the service receiver.

NOTIFICATION No. 08/2015-Service Tax

New Delhi, the 1st March, 2015

G.S.R. —(E).- In exercise of the powers conferred by sub-section (1) of 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 makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.26/2012- Service Tax, dated the 20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 468 (E), dated the 20th June, 2012, namely:-

1. In the said notification, in the Table,-

(i) against Sl. No. 2, in column (4), for the entry, the following entry shall be substituted, namely:-

“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.”;

(ii) against Sl. No. 3, in column (4), for the entry “ Nil”, the entry “Same as above” shall be substituted;

(iii) for Sl. No. 5 and the entries relating thereto, the following serial number and entries shall be substituted, namely:-

(1) (2) (3) (4)
“5 Transport of passengers by air, with or without accompanied belongings in

(i) economy class

(ii) other than economy class

40

60

CENVAT credit on inputs and capital goods, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.”;

(iv) against Sl. No. 7, in column (3), for the entry “25”, the entry “30” shall be substituted;

(v) Sl. No. 8 and entries relating thereto shall be omitted;

(vi) against Sl. No. 10, in column (3), for the entry “40”, the entry “30” shall be substituted.

2. This notification shall come into force on the 1st day of April, 2015.

[F.No. 334/5/2015 – TRU]

(Akshay Joshi)

Under Secretary to the Government of India

Note:-The principal notification No. 26/2012 – Service Tax, dated 20th June, 2012, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i) vide number G.S.R. 468 (E), dated the 20th June, 2012 and was last amended by notification No.08/2014-Service Tax, dated the 11th July, 2014 vide G.S.R. 477 (E), dated the 11th July, 2014.

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