Domestic travel by air is covered under services liable to CED under VAT Mode (Sales Tax Mode). CED at the rate of 20 percent of the fare paid by the passengers was liable on the domestic air travel. Now, only 15 percent CED will be applicable on the domestic travel by air.
Following is the text of the notification issued on Monday: In exercise of the powers conferred by sub-section (1) of section 12A of the Central Excise Act, 1944 (I of 1944), read with sub-section (2) of section 4 thereof, the Federal government is pleased to direct that the following further amendment shall be made in its notification SRO 333(I)/2002, dated the 15th June, 2002, namely:- In the aforesaid notification, in Table-II, against sub-heading No 9803.1000 in column (I), in column (3), for the word "twenty" the word "fifteen" shall be substituted.