Service tax on Tpt of passanger

[sunil jain]

As per exemtion list vide item no. 23 in notification  no. 25/2012, dt 20th June, 2012,  Transport of passengers by air embarking from or terminating in an airport located in the NE states is a exempted service.

In case aircraft is provided on wet lease for use  of PASSANGER SERVICE only between two NE states,whether lease rent charged would qualify for this exeption. In my view this should be exemped as aircraft use ifor eligible purpose.

 

Thanks,

 

CA. R.K. Aggarwal

AI Summary

Debate on Service Tax Exemption for Aircraft Wet Leases in NE States Under Notification No. 25/2012 A discussion on a forum addresses whether lease rent charged for aircraft provided on a wet lease for passenger services between two Northeast (NE) states qualifies for a service tax exemption. The exemption, outlined in notification no. 25/2012, applies to passenger transport by air in NE states. One participant argues that lease income is taxable unless NE states are non-taxable territories, while another believes the exemption applies only to passenger transport services, not wet leases. A third participant asserts that the exemption is available for NE states regardless of the lease type.