Exemption for services provided in relation to a ‘Package Tour’ - 039/97 - Service Tax

Package tour tax exemption limits service tax liability where billing is inclusive and credit benefits are not claimed.

Exemption reduces a tour operator's service tax liability for a package tour by relieving tax in excess of that calculated on forty per cent of the gross charge where the operator issues an inclusive bill and provides both transportation and accommodation; the exemption is excluded if Cenvat credit has been taken or alternative notification benefits have been availed.