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<h1>Tour Operators Now Subject to Service Tax Under Amended Rule 2, Effective September 1, 1997.</h1> The circular informs that the Central Government, exercising its powers under the Finance Act, 1994, has amended the Service Tax Rules, 1994, through the Service Tax (Seventh Amendment) Rules, 1997. Effective from September 1, 1997, the amendment introduces a new provision in rule 2, sub-rule (1), clause (d), which mandates that every tour operator issuing bills for services rendered will be subject to service tax. This change is formalized under Notification No. 38/97 dated August 22, 1997.