23rd May 2016
 
To, All Members 
 
Dear Friends,
 
Sub: Service Tax effective 01 June 2016
 
Effective 01 June 2016 the Krishi Kalyan Cess is levied on the service tax. The revised rates of service tax effective 01 June 2016 would be as follows:-
 
FOR THOSE REGISTERED UNDER TOUR OPERATOR CATEGORY
 
SERVICE
SERVICE TAX
@ 14%
S.B.CESS 
@ 0.50%
KRISHI KALYAN CESS
@ 0.50%
TOTAL SERVICE TAX
@ 15%
ROOM ONLY 1.40% 0.05% 0.05% 1.50%
Other than above
including Tour Package
and Transport including
surface transport both
air ticket or by Cruise as
part of Tour Package
4.20% 0.15% 0.15% 4.50%
 
FOR THOSE REGISTERED UNDER TRANSPORT CATEGORY
 
SERVICE
SERVICE TAX
@ 14%
S.B.CESS 
@ 0.50%
KRISHI KALYAN CESS
@ 0.50%
TOTAL SERVICE TAX
@ 15%
Those who are registered under Transport category 5.60% 0.20% 0.20% 6%
 
FOR THOSE REGISTERED UNDER AIR TICKET AGENT CATEGORY
 
SERVICE
SERVICE TAX
@ 14%
S.B.CESS 
@ 0.50%
KRISHI KALYAN CESS
@ 0.50%
TOTAL SERVICE TAX
@ 15%
*Air Ticket Domestic 0.70% 0.025% 0.025% 0.75%
*Air Ticket International 1.40% 0.05% 0.05% 1.50%
For those charging service
tax on service charge or commission
14% 0.50% 0.50% 15%
 
*Necessary amendments in the relevant para of service tax act is still awaited. 
 
TO BE CHARGED BY THE HOTELS ONLY
 
SERVICE
SERVICE TAX
@ 14%
S.B.CESS 
@ 0.50%
KRISHI KALYAN CESS
@ 0.50%
TOTAL SERVICE TAX
@ 15%
HOTEL ROOM 8.40% 0.30% 0.30% 9%
FOOD 5.60% 0.20% 0.20% 6%
 
TO BE CHARGED BY THE AIRLINES (IT SHOULD BE INCLUDED IN THE AIR TICKET COST) AIR TICKET (BOTH DOMESTIC AND INTERNATIONAL TICKETS)
 
SERVICE
SERVICE TAX
@ 14%
S.B.CESS 
@ 0.50%
KRISHI KALYAN CESS
@ 0.50%
TOTAL SERVICE TAX
@ 15%
Business Class 8.40% 0.30% 0.30% 9%
Economy Class 5.60% 0.20% 0.20% 6%
 
The above will be applicable for all bills raised on or after 01 June 2016. For all payments received before 31 May 2016 the old rates of service tax would be applicable.
 
CENVAT Credit is available only between Tour Operator and Tour Operators. If you are registered under Tour Operator category services provided by a Tour Operator then CENVAT credit is permissible. However those taking the CENVAT credit have to obtain a copy of the service tax registration of all such Tour Operators and also they  should be satisfied that a person is a genuine Tour Operator.
 
Further most important,  CENVAT credit is not available on Swachh Bharat Cess. However CENVAT credit is available on Krish Kalyan Cess and is to be adjusted against Krishi Kalyan Cess only.   
 
Request please go through the above and please keep this circular in your records safely for future reference. In case you require any clarification please write to the IATO office for the same.
 
Pronab Sarkar                                                    Lally Mathews
President                                                             Secretary