Service Tax on tour operators – Board clarification
In 2004, Board has issued directions to the Department not to undertake coercive recovery action against tour operators who operate regular point to point services in tourist buses having contract carriage permit. The doubt was regarding the levy of tax on the commission or the gross receipts. Recently the Government has granted an abatement of sixty percent of the gross amount retrospectively from 1.4.2000, by Notification 15/2007-S.T., Dated April 4, 2007. Now the Board wants pending Show Cause Notices to be decided by allowing the abatement.
Board’s F.No. 354/180/2005-TRU, Dated April 13, 2007