The Central Board of Excise and Customs (CBEC) has recently issued a notification granting 10% exemption to the services of transport of passengers, with or without accompanied belongings, by air, embarking from or terminating in a Regional Connectivity Scheme Airport. The present notification introduces an amendment in the earlier notification by introducing serial number 5A to the principal notification dated 20.06.2012.
As per the Notification, such exemption is subject to a condition that the service provider has not availed CENVAT credit on inputs, capital goods and input services used for providing the taxable services under the relevant provisions of the CENVAT Rules.
Earlier, the services of transport of passengers, with or without accompanied belongings, by air were given exemption through the Notification No. 26/2012 dated 20.06.2012. The quantum of exemption to such services was 40%.
Read the full text of the notification below.
