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of <h1>New Service Tax Rules: Reduced Rates for Air Travel Agents, Mandap Keepers' Responsibilities Updated Under Rule 2 Amendments</h1> The Central Government issued the Service Tax (Third Amendment) Rules, 1997, effective from July 1, 1997, amending the Service Tax Rules, 1994. The amendments include the addition of sub-clauses to rule 2, sub-rule (1), clause (d), specifying service tax responsibilities for air travel agents and mandap keepers. Air travel agents have the option to pay service tax at a reduced rate of 0.25% on domestic and 0.5% on international basic fares instead of the standard 5% on taxable services. This option, once chosen, must be applied consistently throughout the financial year.
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