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of <h1>India Caps Service Tax on Economy Class Air Travel: Rs. 150 Domestic, Rs. 750 International; No CENVAT Credit Allowed</h1> The Government of India issued a notification on June 22, 2010, under the Finance Act, 1994, exempting certain air travel services from service tax exceeding 10% of the ticket's gross value. For domestic air travel in economy class, the maximum service tax is capped at Rs. 150 per journey, while for international economy class travel from India, it is capped at Rs. 750 per journey. This exemption does not apply if CENVAT credit on inputs is claimed. The notification took effect on July 1, 2010, and was later superseded by a notification in 2012.
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