TMI BlogService Tax on services rendered by a (i) Rent-a-Cab Scheme Operator (ii) Tour Operators with effect from 1-4-2000 — ProcedureX X X X Extracts X X X X X X X X Extracts X X X X ..... granted to these two services. The service tax is therefore applicable on these two services with effect from 1-4-2000. 4. Attention is also invited to Trade Notice No. 8/98 dated 13-10-1998 and 10/98 dated 9-12-1998 explaining the scope of Service Tax levy on Rent-a-Cab Scheme Operator and Tour Operator introducing the changed definition as per Section 65 (38) and Section 65 (52) of the Finance Act, 1994. The definition and provisions in details of these two services are given below for the information of the Trade and all concerned. 5. Rent-a-Cab Scheme Operator The definition of term"Rent-a-Cab Scheme Operator" as per Section 65 (38) of Finance Act, 1994 as amended means "any person engaged in the business of renting of cabs". Prior to amendment, scope of the said term was limited to a person who was holding a licence under the Rent-a-Cab Scheme, 1989, framed by the Central Government, under the Motor Vehicle Act, 1988, as a Rent-a-Cab Scheme Operator. Under the said scheme, Licence is granted only in the case where a person has a minimum of 50 cabs. However, in the revised definition, the requirement of operators being registered under the Rent-a-Cab Scheme has been di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the distance between such places and the "taxable service" means any service provided to any person by a tour operator in relation to a tour. The rate of service tax is 5% and the value of taxable service in relation to the service provided by a tour operator to a client, shall be the gross amount charged by such operator from the client for services in relation to a tour and includes the charges for any accommodation, food or any other facilities provided in relation to such tour. 6.2 The revised definition provides that any person engaged in the business of operating tours in a tourist vehicle, covered by a permit granted under the Motor Vehicle Act, 1988 or Rules made thereunder, would be treated as a Tour Operator. Consequently, 'non-permit holders', who operate as Tour Operator by using vehicle which may have been leased or hired from persons who hold tourist permit, are also covered under the definition of a Tour Operator and are liable to pay Service Tax. 6.3 As per rule 82 of the Central Motor Vehicle Rules, 1989 a tourist permit is granted only for a 'tourist vehicle'. As per the Motor Vehicle Act, Section 2 (43) a tourist vehicle means a contract carriage constru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or from the client and shall include the charges for other services provided, such as accommodation, food and other facilities in relation to such tour. In other words, it will be on the gross amount charged to the customer. However, in cases where the tour operator provides a package tour i.e. which necessarily includes accommodation for stay and may also include other facilities such as food, guide services etc, an abatement of 60% of the total amount charged may be given for the purpose of the service tax provided that the bill issued for this purpose clearly indicates that it is inclusive of such charges. In other words, service tax would be leviable on 40% of the total amount charged in cases where the tour operator provides a package tour and the price of which mandatorily includes charges for accommodation for stay provided during the course of tour (Notification No. 39/97-ST refers). Further an abatement of 90% from the gross amount charged to the client has been provided where the tour operator provides the services solely for booking or arranging accommodation (Notification 40/97-ST refers). However, this abatement will not be allowed in case the bill issued does not incl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r part of the month, by which such crediting of the tax or any part thereof is delayed. 8.3 Rule 6 of the Service Tax Rules, 1994 provides for the procedural aspect of the payment of service tax on monthly/quarterly basis. Government has decided that this collection of Service Tax shall be deposited by way of (Yellow colour) TR-6 challan forms (Major Head 0044) submitted only through those banks which are presently authorized to collect the Central Excise duties in the Commissionerate. In Pune Central Excise Commissionerate various branches of Bank of Maharashtra have been nominated for this purpose. For computerised accounting of Service Tax, each assessee shall be assigned a code called E.C.C. Code which must be invariably mentioned on the TR-6 challan forms while depositing the monthly Service Tax. These and other code numbers shall be informed to the assessee which he should invariably mention on the TR-6 challans. 8.4 As far as possible, the assessees should get the TR-6 challans with their own details so as to avoid mistakes. 9. Provisional Assessment 9.1 The concept of provisional assessment has been built into the Service Tax Rules. Whenever an assessee is, for an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may also apply for refund, wherever he has paid service tax more than the tax assessed, in accordance with the provisions of Section 11B of the Central Excise Act, 1944. 12. Relaxation from Records and Cheques No special records for service tax is being prescribed. The records including the computerized data, if any, as maintained by the assessee in accordance with the provisions of the various other laws in force will normally be accepted for administering service tax. Every assessee shall furnish to Deputy Commissioner, Incharge of Service Tax cell at the time of filing the first half yearly return, i.e. ST-3, a list of all accounts maintained in relation to the services provided by him under various existing laws. 13. There will be no routine visits by any Central Excise Officers to the premises of the Service Tax Payers for routine checks. Any special visits by an officer lower in ranks than the Deputy/Assistant Commissioner for the purpose of any enquiries or verification of documents/records maintain will be undertaken only with the due approval of Deputy/Assistant Commissioner, Incharge of Service Tax Cell. 14. Appellate Mechanism Appellate Mechanism relating t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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