NOTIFICATION No. 39/97-ST, dated 22-8-1997
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 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. Of the gross amount charged from any person by such operator for the services provided in relation to a tour, where the tour operator provides a package tour to any person and the bill issued for this purpose indicates that it is inclusive of charges for such a tour.
Provided that the said exemption shall not apply in such cases where –
(i) the 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].".
Explanation-For the purposes of this notification, the expression "package tour" means a tour in which the provision for transportation and accommodation for stay of the person undertaking the tour has been afforded by the tour operator.