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Wednesday, Jan 02, 2002

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Tax relief
By Our Special Correspondent

NEW DELHI, JAN. 1. To market India as a safe and secure destination in the aftermath of the September 11 terrorist attacks in the U.S., the Government today exempted the tourism industry from service tax.

The exemption would be available for catering in hotels for which the Finance Ministry has given its approval to a proposal by the Tourism Ministry. The industry attracts five per cent service tax on billed amount. A rebate of 40 per cent was so far being given on the billed amount if catering was involved. Now 100 per cent rebate would be provided on all services involving catering in hotels.

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