d08c4f03_nternational_in_bound___Page_3__Comment
[Reference Code] 086.01 / 01.07.07 [Issue] An international journey commencing from an Indian airport involves stopover / transfer at intermediate airports outside India before reaching the destination (say Mumbai-Dubai-London-New York). Whether service tax would be leviable in such case on the value indicated in the ticket for the entire journey or only on that part of the value attributable to the first sector (Mumbai-Dubai) of the journey? [Comment] 
Aim of the passenger is to travel from Mumbai to New York. Actual destination of the international journey is the criteria to decide the value of the service. (in this case, New York). Stopover / transfer at intermediate airports, being merely incidental and part of the main journey, is of no relevance or consequence for levy of service tax under section 65(105)(zzzo) read with section 66. Service tax in such cases is leviable on the total consideration of a single composite service relating to the entire journey. i.e., value indicated in the ticket for the entire journey.
014 - Service Tax - Circulars - Year 2007 - Circular No.- 90 /1/2007, dated - 03-01-2007 - Applicability of service tax on international in-bound - Page 3
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