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of <h1>Tour Operators Exempt from Service Tax Over 40% on Package Tours Since 1997, Rescinded in 2006</h1> The notification exempts tour operators from a portion of service tax on package tours, effective from September 1, 1997. The exemption applies to the service tax exceeding 40% of the gross amount charged for tours, provided the bill includes tour charges. However, this exemption does not apply if the tour operator has claimed credit under the Cenvat Credit Rules, 2004, or availed benefits under a prior government notification dated June 20, 2003. The term 'package tour' refers to tours that include both transportation and accommodation. The notification was later rescinded by a subsequent notification in 2006.
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