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: due date for vat payment :: ACCOUNTING STANDARD :: TDS :: ACCOUNTING STANDARDS :: VAT Audit :: empanelment :: cpt :: list of goods taxed at 4% :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: form 3cd :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
« Service Tax »
 A 5-Point Guide For Buyers To Understand The Effect Of GST On Real Estate
 Stalled unsorted diamond imports to resume after GST rate revision
 TDS, TCS deductors can apply for GST registration from 18 September
 E-commerce companies face tax heat as I-T department says discounts should be treated as capital spend
 Central Goods and Services Tax (Sixth Amendment) Rules, 2017
 GST will also impact direct tax collection
 Seeks to extend time period for filing of details in FORM GSTR-6 for months of July & August
 GST: Is input tax credit available for tax paid on mobiles given to staff?
 GST filing, reconciliation solution launched
  Finance Ministry asks taxmen to submit note on high-pitched assessments
 Step by Step Guide for GST Enrolment for existing Central Excise / Service Tax Assessees

New service tax regime drills holes in economy flyers pockets
April, 06th 2012

Economy class passengers should be ready to pay more on both international and domestic routes as the new service tax has made air fares more expensive. As per the new rules, there is no upper cap to the tax chargeable on tickets.

Travel experts said that passengers, earlier paying a fixed Rs 155 as service tax on domestic travel, are now paying Rs 200-400 instead. The higher the fare, the more would be the increase in service tax.

"Passengers are now paying almost double the tax on many sectors. In the case of expensive tickets, the charges would be higher," said Rajesh Rateria, managing director, Cirrus Travels. "It would pinch more during peak travel time in summers and winters when fares escalate."


Tickets on the international sector too have become dearer.

Earlier, the service tax rate on international economy class fares was 10.3% or a maximum of Rs 773 (whichever was lower). Now the rate is 4.9%. "This means that on a ticket of Rs 63,000, a passenger was paying a maximum charge of Rs 773. Now, since the upper limit has been removed, an economy class passenger pays Rs 3,100 on the same fare," said Pradip Lulla, director, Cupid Travels. "This is a significant sum of money for economy travelers."

Business class international passengers stand to gain from this. "Earlier, the tax rate for international business was 10.3% on the base fare. Now it is down to 4.94%. This is the only gain that can be pointed out in the new tax rate," a tour operator said.

Tour operators said the hike in the fares may affect travel, particularly for economy travelers, who may want to travel with family. "When one is traveling alone, the hike may seem small. However, if it is a family of four planning a budget holiday abroad, the hike would add up to a lot more depending on the cost of the ticket," a travel agent said.

Tour operators said the government had actually increased the service tax by 12.32%. "However, after that the government gave a rebate of 60%. This means that 4.9% is the chargeable tax. Even that has pushed the fares higher." Lulla said.

In the case of a jet fuel hike, which travel agents feel is likely, the fares would go up by a further 5%. "Now the fares would only increase. The passenger would have to pay the price for tax and fuel price hike since airlines are in no shape to support it," said Rateria.

Travel experts said that passengers, earlier paying a fixed Rs 155 as service tax on domestic travel, are now paying Rs 200-400 instead. The higher the fare, the more would be the increase.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Internet Marketing Website Marketing Internet Promotion Internet Marketing India Website Marketing India Internet Promotion India Internet Marketing Consultancy Website Marketing Consulta

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