<h1>Government notification (23/8/2007) reduces effective service tax on full package tours to 25% of full rate</h1> A government notification dated 23/8/2007 amends an earlier service-tax notification to reduce the effective service tax on package tour operator services to 25% of the full rate (3.09% of gross value). The amendment defines 'package tour' to include bundled transportation, accommodation, food, guide and entry charges and sets differentiated effective rates: 25% (from 40%) for full package tours; 10% unchanged for operators solely arranging accommodation where the invoice itemizes accommodation charges; and 40% unchanged for other tour operator services where the bill shows the gross tour charge.