Pilgrimage to Kailash Mansarovar and Haj will become cheaper with the government exempting such tours from the service tax.
According to a notification, service tax exemption has been provided to "services by a specified organisation in respect of a religious pilgrimage facilitated by the ministry of external affairs of the Government of India, under bilateral arrangement".
The Haj Committees and Kumaon Mandal Vikas Nigam Ltd, which organise the religious pilgrimages will not have to service tax.
Service tax is levied at 12% on all services which are not mentioned in the negative list. It is also levied on tour operators.
The exemption will make Haj and Kailash Mansarovar pilgrimage cheaper for persons going on such tours.