Abatement on air passenger transport: differential effective service tax rates for economy and other classes, subject to CENVAT credit condition.

Abatement and valuation for transport of passengers by air set class-based effective rates: 40% of the service tax base where no CENVAT credit on inputs and capital goods has been taken; from 1 April 2015 economy class remains at that effective rate while other classes attract a higher effective rate, both contingent on the provider not availing CENVAT credit under the CENVAT Credit Rules, 2004.

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