Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: empanelment :: articles on VAT and GST in India :: VAT Audit :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: ACCOUNTING STANDARDS :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: cpt
 
 
News Headlines »
 Income tax exemption for FY19
 How will the new provisions really work?
 How to save income tax? Best tips for young earners
 Forgot to verify your income tax return? Here's help
 Notification of Government e-Marketplace (GeM) under section 138 of the Income-tax Act
 Income tax returns can be filed even if you missed deadline
 What is the difference between a tax return and a tax refund?
 Improving tax compliance in India
 How to invest in the new LTCG tax regime
 5 Tips to help you save tax
 Why to file income tax return?

Service tax on premium travel may go
December, 23rd 2006

Frequent fliers hopping to international destinations on premium class may hope for some reduction in fares. The finance ministry is considering a proposal from Indian airlines to remove service tax on first and business class travel to international destinations.

Airlines have argued that removal of service tax on these heads would help them manage their costs better while reducing the ticket prices for international business and first class travellers. Service tax burden increases the cost of international travel in the first and business class by 12.24%.

The industry has also demanded removal of service tax imposed on landing, airport and air navigation charges.

According to industry sources, the airlines have said the tax on business and first class tickets is not a global practice, and it puts India at a disadvantage as a connecting point to other countries. By raising the total amount paid by passengers connecting through India, in comparison to connections via any other point, the tax jeopardises Indian carriers potential as international network carriers, the domestic carriers have told the finance ministry.

The tax reduces the competitive advantage of Indian carriers vis--vis their overseas counterparts who can price their tickets relatively cheaper since they do not have to pay the service tax on business class tickets, airlines have argued. According to Finance Act 2006, the definition of `taxable services includes `fare charged to business class and first class passengers embarking on international journeys from any customs airport in India.

Domestic airlines have also cited logistical and technical difficulties in implementing the tax. The service tax provision is logistically difficult to implement as fares charged and passenger routings -- both domestic as well as international -- vary. There are also logistical and technical complexities with connecting passengers.

Service tax on first and business class tickets should be removed, as implementation and collection of this tax is logistically difficult and puts the Indian aviation industry at a competitive disadvantage, the Federation of Indian Airlines has written to the finance ministry.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Web Application Development Web based Software Solution Web Application Deployment Web Application Solutions Web Application Software Development Web Application Deployment Web Application Programming Web Application Design and Development

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions