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 (other than service in relation to a package tour) 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 forty per cent "OLD - ten per cent ". of the gross amount charged from any person by such operator for the services provided in relation to a tour and bill issued for this purpose indicates that the amount charged in the bill is the gross amount charged for such a tour.

(In above para words "ten per cent" has been substituted vide Notification No. 08/2004-ST, DT. 09/07/2004)

Provided that the said exemption shall not apply in such cases where–

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

(ii) 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].

(G.S.Karki)
Under Secretary to the Government of India