16th January 2017 
To, All Members,
Dear Colleagues,   
Sub: Service Tax Changes Effective from 22 January 2017 
This is further to our circular dated 14th January 2017 regarding changes which have been made by the Department of Revenue, Ministry of Finance, Government of India in the service tax vide notification no. 4/2017 dated 12.01.2017. These changes will be effective from 22.01.2017. 
However, kindly note, as per the above said notification, service tax abatement to tour operators will now be 40 % (which was wrongly interpreted by us 60 % in our last circular dated 14th January 2017) and accordingly service tax on tour operators after abatement will be applicable @ 9%  (inclusive of 0.5% Swachh Bharat Cess and 0.5% Krishi Kalyan Cess) on all billings. However, more Cenvat Credit will be available to tour operators now.  
In the regard, attached please find copy of legal opinion given by our service tax expert, Mr. S.C. Kamra, Advocate, which is self- explanatory. 
However, do consult your chartered accountants for further clarification.  You may also consult Mr. S.C. Kamra in your individual capacity by paying his professional fees.  Contact details are given below: - 
Mr. S.C. KAMRA & Co. 
Advocates & Solicitors, 
B-2/210, (Basement), Safdarjung Enclave
New Delhi - 110029
Ph.: 011-26161079, 26185504, 26183763
Mobile No.: 98100 - 72662
Email ID : sckamra@airtelmail.in
With regards,  
Rajiv Mehra
Vice President