Effective rate of service tax for tour operator services (other than service in relation to a package tour) - 002/04 - Service Tax

Tour operator service tax exemption: taxable base limited to a proportion of gross tour charges, with specified exceptions.

Tour operator services (other than services in relation to a package tour) are exempt to the extent the service tax exceeds the amount calculated on forty per cent of the gross amount charged for the tour, where the bill indicates that amount as the gross charge. The exemption does not apply if Cenvat credit on inputs or capital goods has been claimed under the Cenvat Credit Rules, 2004, or if the operator has availed the benefit of the earlier concession notification; a package tour means transportation and accommodation are both arranged by the tour operator.