Saturday, 29 September 2012

No Service tax on Railway tickets issued prior to 30-9-2012

Levy of Service Tax on Railway Passengers Travelling in AC Classes/First Class from 1-10-2012 – No Service Tax to be Levied on Tickets Issued Prior to 1-10-2012 – In Case of Cancellation of Tickets Issued on or after 1st October 2012, the Applicable Amount Including Service Tax to be Refunded by Railways
Press Release, dated 28-9-2012
The Ministry of Railways has made partial modification in levy of Service Tax on the fare of passengers travelling in AC Classes/First Class from 1st October, 2012. As per the corrigendum issued by Ministry of Railways today i.e. 28-9-2012, there are following changes:
(iService Tax amounting to 3.708% on the total fare of passenger services in (a) AC First Class, (b) Executive Class, (c) AC-2 tier Class, (d) AC-3 tier class, (e) AC Chair Car class, (f) AC Economy class and (g) First Class is leviable from the 1st day of October, 2012. It has been clarified that the Service Tax would be collected on the tickets issued/bookings made on or after 1-10-2012. Service Tax is not leviable on tickets issued prior to 1-10-2012 and hence will not be collected on board the trains.
(ii) In case of cancellation of tickets booked by the passengers on or after 1-10-2012, the applicable amount including refundable Service Tax amount will be refunded by Railways as per Railway refund rules and Finance Ministry guidelines.

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