Notification number 1/2004-FTT dated 8^th January, 2004 exempts all exempts all passengers embarking on international journey from the payment of foreign travel tax leviable under sub-section (1) of section 35 of the said Act.  Therefore, there is no foreign travel tax presently levied on passengers embarking on international journey.
 

FINANCE ACT, 1979 (21 OF 1979)  (FROM SECTION 33 TO 48)

CHAPTER V.    FOREIGN TRAVEL TAX

33.  Extent and Commencement.

(1) This Chapter extends to the whole of India.

(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

34.   Definitions.

In this Chapter, unless the context otherwise requires,-

(a)	“aircraft” means an aircraft as defined in section 2 of the Aircraft Act, 1934, which is used (whether exclusively or not) for the carriage of passengers;
(b)	“carrier” means the person or authority undertaking the carriage of a passenger on an international journey and includes any agent, representative or other person acting on behalf of such person or authority;
(c)	“customs port” and “customs airport” mean, respectively, a port or an airport appointed as such under clause (a) of section 7 of the Customs Act, 1962;
(d)	“international journey”, in relation to a passenger, means his journey from any customs port or customs airport on board any ship or aircraft to a place outside India;
(e)	“passenger” means any person boarding, at any customs port or customs airport, a ship or an aircraft for performing an international journey, but does not include-
	(b)	a person who has arrived at such customs port or customs airport from a place outside India and is in transit through India:
		Provided that he continues his journey to a place outside India -
		(i)	on board the same ship and as part of the same voyage of the ship; or
		(ii)	by the same aircraft and the flight having the same number by which he arrived; or
	(b)	a person employed or engaged in any capacity on board the ship or aircraft on the business thereof;
	(c)	“ship” means a ship used (whether exclusively or not) for the carriage of passengers.

Foreign travel tax.

35. (1)      With effect from the date of commencement of this Chapter, there shall be levied on all passengers embarking on international journeys a tax (hereafter in this Chapter referred to as the foreign travel tax)-

(i)	at the rate of [five hundred rupees]* for every such journey to any place outside India other than a place in a neighbouring country;
(ii)	at the rate of one hundred and fifty rupees for every such journey, where such journey is to any place in a neighbouring country.
	Explanation.- For the purposes of this sub-section, “neighbouring country” means any country which the Central Government may, having regard to the classes of persons who generally perform journeys to such country, the distance between India and such country, the means of communications available for reaching such country and any other relevant circumstances, specify in this behalf by notification in the Official Gazette.

[ Note:- * as amended by Finance Act, 1989, Finance Acts (Amendment) Ordinance,1997 & the Finance (second amendment) Ordinance , 1997 (24 of 1997)]

(2)           In accordance with the rules made under this Chapter, the foreign travel tax shall be collected by the officers of customs appointed under the Customs Act, 1962, or such officers of the Central Government or the State Government or the International Airports Authority of India constituted under the International Airports Authority Act, 1971, or such carriers, as may be authorised in this behalf by the Central Government by notification in the Official Gazette and paid to the credit of the Central Government.

Interest for default in payment of foreign travel tax.

*[ 35A. (1) Where any carrier or other person fails to pay the foreign travel tax to the credit of the Central Government under sub-section (2) of section 35, in accordance with the rules made under this Chapter, he shall pay an interest on the amount of tax not so paid for the entire period for which payment of such tax has been delayed, at such rate, not below twenty per cent. and not exceeding thirty per cent. per annum, as the Central Government may, by notification in the Official Gazette, specially in this behalf.  

(2) Where, on or before the date of commencement of section 97 of the Finance Act, 1994, the foreign travel tax had not been paid by any carrier or other person to the credit of the Central Government, in accordance with the rules made under this Chapter, the carrier or other person shall pay the amount of such tax within a period of thirty days of such commencement, failing which he shall be liable to pay the interest in accordance with the provisions of sub-section (1).]

[* Inserted vide Finance Act 1994 (32 of 1994]  

Power to exempt.  

36.   Notwithstanding anything contained in this Chapter, the Central Government may, by notification in the Official Gazette, and subject to such conditions and limitations as may be specified therein, exempt, wholly or to such extent as may be specified in the notification, any class or classes of passengers or any category or categories of passengers under any such class from the payment of foreign travel tax if that Government is satisfied that it is necessary or expedient so to do, having regard to the place of destination, purposes of the journey and any other special circumstances.

Passenger not to be permitted to board ship or aircraft without payment of foreign travel tax.

37.    No carrier or other person in charge of a ship or an aircraft shall allow any passenger to board the ship or aircraft unless such passenger has paid the tax payable by him under this Chapter.

Penalties.

38.  (1) Every passenger who embarks or attempts to embark on an international journey without paying the tax payable by him under this Chapter shall, in addition to his liability to pay the tax, be liable to a penalty not exceeding two hundred rupees.  

(2) Every carrier or other person in charge of a ship or an aircraft, who, in contravention of the provisions of section 37, allows any passenger or passengers to board the ship or aircraft, shall be liable to a penalty not exceeding three times the amount or the aggregate amount of the tax payable by the passenger or passengers so allowed to board the ship or aircraft.  

*[(3) Every carrier or other person who fails to pay the foreign travel tax to the credit of the Central Government under sub-section (2) of section 35 shall, in addition to the payment of such tax and the interest leviable thereon, be liable to pay penalty which shall not be less than one-fifth but which may extend to three times of the amount of the tax not so paid to the credit of the Central Government.  

(4) Any rule made under this Chapter may provide that in case of breach thereof by the carrier or other person, he shall be liable to a penalty which shall not be less than five hundred rupees but which may extend to fifty thousand rupees, and where the breach is a continuing one, with further penalty which may extend to five hundred rupees for every day after the first during which such breach continues.  

(5) Any penalty under this section may be adjudged, collected and paid to the credit of the Central Government by such authority and in such manner as maybe specified in the rules made under this Chapter:

Provided that no order for imposing a penalty shall be passed by such authority unless the carrier or other person on whom the penalty is proposed to be imposed is given an opportunity of being heard in the matter by such authority.]

[ * Inserted vide Finance Act, 1994]

Modes of recovery. 

*[38A. (1) Where the foreign travel tax or interest or penalty is not paid by a carrier or other person as required under the provisions of sub-section (2) of section 35, section 35A or section 38, the authority specified in the rules (hereinafter referred to as the authority) may, after the tax, interest or penalty has been determined under the rules, proceed to recover the amount of such tax, interest or penalty by any mode specified in sub-section (2) or sub-section (3). 

(2) The authority may require any person, from whom any amount is due to the carrier or other person, to deduct the tax, interest or penalty so determined from the said amount and such person shall comply with any requisition by the authority and shall pay the amount so deducted to the credit of the Central Government:

                Provided that nothing in this sub-section shall apply to any part of the amount exempt from attachment in execution of a decree of a civil court under section 60 of the Code of Civil Procedure, 1908. 

(3) The authority may prepare a certificate signed by it specifying the amount due and send it to the Collector of the district in which the carrier or the other person owns property or resides or carries on business and the said collector, on receipt of such certificate, shall proceed to recover from the said carrier or other person, the amount specified thereunder as if it were an arrear of land revenue.]             

[ * inserted vide Finance Act, 1994]

Protection of action taken in good faith  

39.  No suit or other legal proceeding shall lie against the Central Government and no suit, prosecution or other legal proceeding shall lie against any officer of the Central Government or the State Government or the International Airports Authority of India referred to in sub-section (2) of section 35 for anything in good faith done or intended to be done in pursuance of this Chapter or the rules made thereunder.

Power to make rules.  

40.  (1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Chapter.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for-

(a)	the collection of the foreign travel tax including the charges for collection payable to any State Government or the International Airports Authority of India referred to in sub-section (2) of section 35 or any carrier, the authorities by whom adjudication of penalties or other functions under this Chapter shall be discharged, the manner in which such tax, penalties or other sums due under this Chapter shall be payable, the manner in which such tax, penalties or other sums shall be collected and paid to the credit of the Central Government and the procedure for claiming refund of any amount paid under this Chapter;
(b)	the powers of officers authorised under sub-section (2) of section 35 to enter, inspect and search any ship or aircraft for the purpose of carrying on any duty imposed on such officer by or under this Chapter:
	Provided that the provisions of the Code of Criminal Procedure, 1973, relating to searches, shall so far as they are applicable, apply in relation to searches under rules made under this Chapter;
(c)	the procedure for adjudication of penalties;
(d)	appeals against order made under this Chapter, the manner in which and the time within which such appeals may be preferred and the fees payable therefor;
(e)	the returns and other particulars and information which may be required to be furnished for the purposes of this Chapter, the persons or authorities by or to whom or which, and the intervals at which, such returns, particulars and information be furnished;
(f)	any other matter which is to be, or may be, provided for by rules under this Chapter.

Rules and notification to be laid before parliament.

41.     Every rule made under this Chapter and every notification issued under the Explanation to sub-section (1) of section 35 or section 36 shall be laid as soon as may be after it is made or issued before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agrees in making any modification in the rule or notification or both houses agree that the rule should not be made or the notification should not be issued, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification.

Cesser of operation of chapter vii of act, 32 of 1971 and saving

42.   Chapter VII of the Finance (No.2) Act, 1971 (relating to foreign travel tax) shall cease to have effect except as respects things done or omitted to be done before such cesser; and section 6 of the General Clauses Act, 1897 shall apply upon such cesser as if the said Chapter had then been repealed by a Central Act.

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Amendment effected vide Finance Act, 1989.

51.          In sub-section (1) of section 35 of the Finance Act, 1979, with effect from such date as the Central Government may, by notification in the official Gazette, appoint-

(a)       in clause (i), for the words “ one hundred rupees”, the words “ three hundred rupees” shall be substituted;

(b)       in clause (ii), for the words “ fifty rupees”, the words “ one hundred and fifty rupees” shall be substituted. 

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AMENDMENT EFFECTED VIDE FINANCE ACT, 1994

97.   In Finance Act, 1979, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint,-

(a)  after section 35, the following section shall be inserted, namely :-

 “  35A. (1) Where any carrier or other person fails to pay the foreign travel tax to the credit of the Central Government under sub-section (2) of section 35, in accordance with the rules made under this Chapter, he shall pay an interest on the amount of tax not so paid for the entire period for which payment of such tax has been delayed, at such rate, not below twenty per cent and not exceeding thirty per cent per annum, as the Central Government may, by notification in the Official Gazette, specially in this behalf.

( 2) Where, on before the date of commencement of section 97 of the Finance Act, 1994, the foreign travel tax had not been paid by any carrier or other person to the credit of the Central Government, in accordance with the rules made under this Chapter, the carrier or other person shall pay the amount of such tax within a period of thirty days of such commencement, failing which he shall be liable to pay the interesting accordance with the provisions of sub-section (1).”  

(b) in section 38, for sub-section (3), the following sub-sections shall be substituted, namely :-  

“(3) Every carrier or other person who fails to pay the foreign travel tax to the credit of the Central Government under sub-section (2) of section 35 shall, in addition to the payment of such tax and the interest leviable thereon, be liable to pay penalty which shall not be less than one-fifth but which may extend to three times of the amount of the tax not so paid to the credit of the Central Government.

(4) Any rule made under this Chapter may provide that in case of breach thereof by the carrier or other person, he shall be liable to a penalty which shall not be less than five hundred rupees but which may extend to fifty thousand rupees, and where the breach is a continuing one, with further penalty which may extend to live hundred rupees for every day after the first during which such breach continues.

(5) Any penalty under this section may be adjudged, collected and paid to the credit of the Central Government by such authority and in such manner as maybe specified in the rules made under this Chapter:

Provided that no order for imposing a penalty shall be passed by such authority unless the carrier or other person on whom the penalty is proposed to be imposed is given an opportunity of being heard in the matter by such authority. “;  

( c) after section 38, the following section shall be inserted, namely :-

“38A. (1) Where the foreign travel tax or interest or penalty is not paid by a carrier or other person as required under the provisions of sub-section (2) of section 35A or section 38, the authority specified in the rules therein after referred to as the authority) may, after the tax, interest or penalty has been determined under the rules, proceed to recover the amount of such tax, interest or penalty by any mode specified in sub-section (2) or sub-section (3).

(2) The authority may require any person, from whom any amount is due to the carrier or other person to deduct the tax, interest or penalty so determined from the said amount and such person shall comply with any requisition by the authority and shall pay the amount so deducted to the credit of the Central Government;

                Provided that nothing in this sub-section shall apply to any part of the amount exempt from attachment in execution of a decree of a civil court under section 60 of the Code of Civil Procedure, 1908.

(3) The authority may prepare a certificate signed by it specifying the amount due and send it to the Collector of the district in which the carrier or the other person owns property or resides or carries on business and the said collector, on receipt of such certificate, shall proceed to recover from the said carrier or other person, the amount specified thereunder as if it were an arrear of land revenue.”.  

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AMENDMENT EFFECTED VIDE THE FINANCE ACTS (AMENDMENT) ORDINANCE, 1997, ISSUED ON 16^th September,1997. [Amendment of Act 21 of 1979]

2. In sub-section 91) of section 35 of the Finance Act, 1979, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, in clause (i), for the words “ three hundred rupees”, the words “ seven hundred and fifty rupees” shall be substituted.  

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THE FINANCE (SECOND AMENDMENT) ORDINANCE, 1997 (NO. 24 OF 1997) Issued on 24^th December, 1997

2. In sub-section(1) of section 35 of the Finance Act, 1979, for clause (i), the following clause shall be substituted, namely:-

“ (i) for every such journey to any place outside India other than a place in a neighbouring country-

(a)      at the rate of seven hundred and fifty rupees on or after the 26^th day of September, 1997 but before the 1^st day of January, 1998;

(b)      at the rate of five hundred rupees on or after the 1^st day of January, 1998;”. 

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