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Embarking/disembarking from specified states

Harsh Jindal

Why transport of passengers by air, embarking/disembarking from some specified states are kept in exempted list?

Exemption for air passenger transport promotes tourism and industrialization by incentivising travel to specified underdeveloped states. Exemption from service tax for transport of passengers by air embarking or disembarking from specified states functions as a targeted fiscal incentive to promote tourism, facilitate industrialization and improve accessibility by lowering the cost barrier to air travel for those economically underdeveloped states. (AI Summary)
Service Tax
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YAGAY andSUN on Aug 25, 2012

These are far reaching, under developed States and to promote the tourism, industrialization, easy reaching there, the exemption to travel by Air has been provided to these States.

Harsh Jindal on Aug 25, 2012

Thanks Sir

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