Mega Exemption Notification

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Luckshya Garg (Querist)
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28 April 2016 Transport of passengers, with or without accompanied belongings, by a Stage carriage falls under the negative list entry (o). Therefore there is no levy of service tax in this case. However, Mega exemption notification serial number 23 exempts - Transport of passengers, with or without accompanied belongings, by (bb) stage carriage other than air-conditioned stage carriage Why is it also mentioned in the exemption notification when there is no levy in the first place? Also why no exemption is provided to air conditioned stage carriage? Please resolve my queries. Thanks.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 April 2016 As per the recent budget amendment from 01-06-2016 negative list entry (o) will be omitted. Mega exemption only applicable. Service tax is levied on air-conditioned stage carriage as it is considered as luxury.

Luckshya Garg

Luckshya Garg (Querist)
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28 April 2016 Thanks. So for the time being, entry (o) is in force no levy till omission. After its omission, the ticket price of DTC AC Buses in Delhi should also go up.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 April 2016 Yes you are right..........

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