The supply of domestic passenger transport services by a qualifying means of transport by land, water or air from a place in the State to another place in the State shall be exempted.

The 'qualifying means of transport' means:

1. Any motor vehicle, including a taxi, bus, train, tram, monorail train or similar means of transport designed or adapted for transport of passengers;

2. Any passenger boat, ferry or other similar vessel designed or adapted for transport of passengers;

3. Any helicopter or airplane designed or adapted for transport of passengers in accordance with Federal Law No. (20) of 1991 on Civil Aviation.

Notwithstanding the provisions of Clause (1) of this Article, the passenger transport services from a place in the State to another place in the State shall not be considered domestic passenger transport services if the transport is carried out by an aircraft and shall be deemed as 'international carriage' as defined in the Warsaw International Convention for the Unification of Certain Rules Relating to International Carriage by Air 1929.

Notwithstanding the provisions of Clause (1) of this Article, the transport of passengers shall not be deemed as domestic passenger transport services if it is undertaken in the context of a pleasure trip whose main objective is sightseeing, or enjoyment of catering services, or other forms of pleasure or entertainment.