Airports Authority of India constituted under Section 3 of the Airports Authority of India Act, 1994

Indian Service Tax

Airport Services

Effective Date: 10/09/2004

Authority: Finance (No.2) Act, 2004

Rate of Service Tax: 10% - Cess 2% of 10% = 0.2. Total ST = 10.2%.

Definitions

&quotaircraft",has the meaning assigned to it in clause (1) of Section c-2 of the Aircraft Act, 1934 (22 of 1934) , [Section 65 (3a)]

&quotaircraft operator",means any commercial concern which provides the service of transport of goods by aircraft, [Section 65 (3b)]

&quotairport",has the meaning assigned to it in clause (b) of Section 2 of the Airports Authority of India Act, 1994 (55 of 1994), [Section 65 (3c)]

&quotairports authority", means the Airports Authority of India constituted under Section 3 of the Airports Authority of India Act, 1994 (55 of 1994) and also includes any person having the charge of management of an airport or a civil enclave, [Section 65 (3d)]

&quotcivil enclave", has the meaning assigned to it in clause (1) of Section 2 of the Airports Authority of India Act, 1994 (55 of 1994), [Section 65 (24a)]

Taxable service

Taxable service means any service provided to any person, by airports authority or any person authorised by it, in an airport or a civil enclave, [Section 65 (105) (zzn)]

Taxable service means any service provided to any person, by an aircraft operator, in relation to transport of goods by aircraft, [Section 65 (105) (zzn)]

Value of taxable service: Gross amount

Exemptions: See Notification No. 18/2004-ST, dt. 10/09/2004 at the end of the Chapter.

• Air Ticketing

• Lease Rentals

• Air Cargo Services

Person liable to pay: Airport authority or person authorised

Head of Account: To be issued.

Changes from 10/9/2004

F.No. B2/8/2004-TRU

Date: 10/9/2004

05. Airport services: Services provided in an airport or civil enclave, to any person by Airports Authority of India (AAl), a person authorized by it, or any other person having charge of management of an airport are taxable under this category. This includes variety of services provided to airlines, as well as. for cargo and passenger handling such as security, transit facilities, landing charges, terminal navigation charges, parking and housing charges and route navigation facility charges. It would be on the gross amount chargeable by AAI or other such authorized person. Thus, charges such as royalty, license fees etc. collected by AAI from other service providers at the airport such as ground handling, security, common user terminal services etc. are chargeable to service tax. However, in case a part of airport/civil enclave premises is rented! leased out, the rental/lease charges would not be subjected to service tax, as the activity of letting out premises is not rendering a service.

Exemption Notification.

[Notification No. 18/2004-ST. dt. 10/9/2004]

In exercise of the powers conferred by sub-section (l) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts that portion of the value of taxable services which are defined in sub-clauses zzm,zzn, zzo, zzq, zzr, zzs, zzt, zzu, zzv, zzw, zzx and zzy of clause 105 of section 65 of the said Act, from the whole of service tax leviable thereon under section 66 of the said Act, which is received by the service provider from the customer, exhibitor, client or any person, as the case may be, prior to the 10th day of September, 2004.