Service Tax on transportation of passengers embarking from or terminating in a Regional Connectivity Scheme (RCS) airports


Seeks to amend Notification No. 26/2012- Service Tax dated 20.06.2012, by inserting of entry “5A” for transportation of passengers embarking from or terminating in a Regional Connectivity Scheme (RCS) airports, with abatement of 90%,for a period of one year from the date of commencement of operations of the Regional Connectivity Scheme (RCS) airport, with condition of without taking any CENVAT credit.

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

NOTIFICATION No. 38/2016-Service Tax

New Delhi, the 30th August, 2016

G.S.R. ---(E).-In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 26/2012- Service Tax, dated the 20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 468 (E), dated the 20th June, 2012, namely:-

1. In the said notification,-

(a) in the TABLE, after Sl. No. 5 and the entries relating thereto, the following serial number and entries shall be inserted, namely :-

“5A Transport of passengers, with or without accompanied belongings, by air, embarking from    or     terminating     in     a     Regional Connectivity Scheme Airport. 10 CENVAT    credit   on    inputs,    capital goods    and   input   services,   used   for providing the taxable service, has not been taken by the service provider under the provisions of the CENVAT Credit Rules, 2004.”

(b) after paragraph 2, the following paragraph shall be inserted, namely :-

“2A. Nothing contained at Sl. No. 5A of the TABLE shall apply on or after the expiry of a period of one year from the date of commencement of operations of the Regional Connectivity Scheme Airport as notified by the Ministry of Civil Aviation.”.

[F. No. 354/226/2013 – TRU (Pt.)]

(Anurag Sehgal)

Under Secretary to the Government of India

Note:-The principal notification No. 26/2012 - Service Tax, dated 20th June, 2012, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i) vide number G.S.R. 468 (E), dated the 20th June, 2012 and was last amended by notification No.8/2016- Service Tax, dated the 1 st March, 2016, vide G.S.R. 256(E), dated the 1 st March, 2016.

 
Notification No : 38/2016-Service Tax



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