Now AC and first class passenger pay more service tax charges

Six months after the Trinamool Congress forced roll back in railway fare hike, the finance ministry imposed 3.7 per cent service tax on freight charges and on AC and first class passenger fares.

The tax will apply to tickets issued in advance. Travelling ticket checkers will recover the service tax from passengers on the train or by the booking office before the train starts off.

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In the case of cancellation of tickets, the service tax amount will not be refunded by the railways, a statement said.

On concessional tickets, service charges of 30 per cent will be charged on the fare being paid by the passenger.

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"The amount of Service Tax collected from passengers will be deposited with the Ministry of Finance as per procedure. Finance Departments of Zonal Railways have been instructed for proper accountal and remittance of Service Tax amount to the Government," the notification said.

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