CENVAT credit on input services for Tour Operator

[Anil Garg]

Dear Sir,

We are a tour operator, providing Inbound services to Foreign tourist, My query is on CENVAT credit notification came on October 2014, who is eligible to get the CENVAT credit.

Kind Regards,

Anil Garg

AI Summary

Tour Operators' CENVAT Credit Eligibility Evolved: 2014 Notification Changes and 2017 Amendments Explained A tour operator inquired about eligibility for CENVAT credit on input services following a notification from October 2014. Respondents clarified that under Notification No. 26/2012-ST, service providers transporting passengers could pay service tax on 40% of gross value if CENVAT credit on inputs and input services was not claimed. Notification No. 8/2014-ST amended this, allowing credit for certain input services, excluding those specific to tour operators, to prevent excessive credit accumulation. Further changes in 2017 allowed input service credit without restrictions, addressing previous issues of high abatement rates leading to credit accumulation.