Government of India Ministry of Finance (Department of Revenue)
New Delhi, the 22nd June, 2010
Notification No. 26/2010 - Service Tax
G.S.R. (E).- In exercise of the powers conferred by clause (aa) of sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the services referred to in clause (zzzo) of sub-section (105) of section 65 of Finance Act, 1994 from so much of service tax as is in excess of,-
(a) ten percent of the gross value of the ticket or rupees one hundred per journey, whichever is less, for passengers travelling in any class, within India;
(b) ten percent of the gross value of the ticket or rupees five hundred per journey, whichever is less, for passengers embarking in India for an international journey in economy class:
Provided that this exemption shall not apply in cases where the credit of duty paid on inputs used for providing such taxable service has been taken under the provisions of the CENVAT Credit Rules, 2004 ;
Explanation,- For the purposes of this notification, economy class in an aircraft means,
(i) where there is more than one class of travel, the class attracting the lowest standard fare; or
(ii) where there is only one class of travel, that class.
2. This notification shall come into force on 1st day of July, 2010.