Fares for first class and AC class in passenger trains besides freight
charges will be increased by 0.5 per cent from June 1,2015 as new service tax
will come into effect.
"Currently, 3.708 % service tax is levied on train fares for AC Class, First Class and freight. This will go up to 4.2 % from June which means the rise is only 0.5 per cent," said a senior Railway Ministry official.
If the AC fare is Rs 1,000, then you will be charged Rs 10 more. Increase in service tax will be applicable on tickets purchased on June 1 and onwards
Note
While the increase in passenger fare is applicable on AC and First Class only, service tax will be levied on all goods transported by Railways.
The new service tax rate of 14 % will come into effect from 1st June 2015 onwards across India. The service tax is currently levied at the rate 12.36 % including education cess. The education cess and secondary and higher education cess shall be subsumed in the new service tax rate.
"Currently, 3.708 % service tax is levied on train fares for AC Class, First Class and freight. This will go up to 4.2 % from June which means the rise is only 0.5 per cent," said a senior Railway Ministry official.
If the AC fare is Rs 1,000, then you will be charged Rs 10 more. Increase in service tax will be applicable on tickets purchased on June 1 and onwards
Note
While the increase in passenger fare is applicable on AC and First Class only, service tax will be levied on all goods transported by Railways.
The new service tax rate of 14 % will come into effect from 1st June 2015 onwards across India. The service tax is currently levied at the rate 12.36 % including education cess. The education cess and secondary and higher education cess shall be subsumed in the new service tax rate.
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