28 April 2016
Transport of passengers, with or without accompanied belongings, by a Stage carriage falls under the negative list entry (o). Therefore there is no levy of service tax in this case.
However, Mega exemption notification serial number 23 exempts -
Transport of passengers, with or without accompanied belongings, by
(bb) stage carriage other than air-conditioned stage carriage
Why is it also mentioned in the exemption notification when there is no levy in the first place?
Also why no exemption is provided to air conditioned stage carriage?
Please resolve my queries. Thanks.
28 April 2016
As per the recent budget amendment from 01-06-2016 negative list entry (o) will be omitted. Mega exemption only applicable. Service tax is levied on air-conditioned stage carriage as it is considered as luxury.
28 April 2016
Thanks. So for the time being, entry (o) is in force no levy till omission.
After its omission, the ticket price of DTC AC Buses in Delhi should also go up.
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