tour operator
This query is : Resolved
18 October 2010
My client is providing tour operating service to IRCTC Mumbai.
Is this exempt uner notification No. 20/2009 DATED 7TH JULY, 2009 OF SERVICE TAX.
Is this exempt uner notification No. 20/2009 DATED 7TH JULY, 2009 OF SERVICE TAX.
22 October 2010
as per notification 20/2009, service by a tour operator having a contract container or tourist vehicles with a permit for inter state or inter state transportation of passengers excluding tourism , conducted tours , chatter or hire services are exempted.
22 October 2010
plz clarify that services PTOVIDED TO IRCTC mumbai are exempted?
02 August 2025
Regarding your query on whether the tour operating services provided **to IRCTC Mumbai** are exempt under **Notification No. 20/2009 dated 7th July 2009** for service tax:
---
### What does Notification 20/2009 say?
This notification provides exemption to services by a tour operator **only if**:
* The tour operator has a contract or charter for tourist vehicles which have a valid permit for **inter-state or intra-state transportation of passengers**,
* And the services exclude **tourism conducted tours**, charters or hire services.
---
### Your case — services provided to IRCTC Mumbai
* If your client is providing **tour operating services** to IRCTC **which involve transport of passengers** using vehicles that hold valid permits for passenger transportation (interstate/intrastate),
* And these are **not services related to tourism conducted tours, charter or hire**, then the exemption **may apply**.
---
### Important points to check:
1. **Nature of services provided**:
Is the service purely transport of passengers (e.g., train ticket booking, transport of passengers) or actual tour operating services (tour packages, sightseeing)?
2. **Type of vehicle permits**:
The vehicles should have the valid passenger transport permits as per the notification.
3. **Contract details**:
Whether there is a valid contract for transportation services with IRCTC.
---
### Summary:
* If the service is **transportation of passengers** via vehicles with permits (interstate/intrastate) under contract with IRCTC, the service may be **exempt**.
* If the service is broader tour operating activities (like packaged tours, sightseeing) then exemption likely **does not apply**.
---
**Suggestion:**
You should carefully examine the contract and nature of services your client provides to IRCTC. If it fits under transport services as defined, then exemption can be claimed.
---
---
### What does Notification 20/2009 say?
This notification provides exemption to services by a tour operator **only if**:
* The tour operator has a contract or charter for tourist vehicles which have a valid permit for **inter-state or intra-state transportation of passengers**,
* And the services exclude **tourism conducted tours**, charters or hire services.
---
### Your case — services provided to IRCTC Mumbai
* If your client is providing **tour operating services** to IRCTC **which involve transport of passengers** using vehicles that hold valid permits for passenger transportation (interstate/intrastate),
* And these are **not services related to tourism conducted tours, charter or hire**, then the exemption **may apply**.
---
### Important points to check:
1. **Nature of services provided**:
Is the service purely transport of passengers (e.g., train ticket booking, transport of passengers) or actual tour operating services (tour packages, sightseeing)?
2. **Type of vehicle permits**:
The vehicles should have the valid passenger transport permits as per the notification.
3. **Contract details**:
Whether there is a valid contract for transportation services with IRCTC.
---
### Summary:
* If the service is **transportation of passengers** via vehicles with permits (interstate/intrastate) under contract with IRCTC, the service may be **exempt**.
* If the service is broader tour operating activities (like packaged tours, sightseeing) then exemption likely **does not apply**.
---
**Suggestion:**
You should carefully examine the contract and nature of services your client provides to IRCTC. If it fits under transport services as defined, then exemption can be claimed.
---
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