« Top Headlines » Open DEMAT Account in 24 hrs  Budget 2024 makes new income tax regime more attractive: See how much taxes you can now save  ITR filing 2024: New vs old income tax regimes, 6 key things to consider while filing your tax return  These five technical glitches may impact your Income tax return (ITR) filing. Know here  ITR filing 2023-24: How to optimise Section 80D deductions at the time of filing tax returns  ITR filing 2023-24: Top 7 mistakes to avoid for hassle-free income-tax return filing this year  Income tax returns for FY 2023-24: Keep these 8 tax law changes in mind while filing ITR this year  ITR Filing 2024: Know who can and cannot file income tax returns using ITR-1 this year  Income Tax Filing: 10 necessary guidelines that you must be aware of  Why you should file your income tax returns before July 31  What is Form 26AS? How to download Form 26AS to file Income Tax Return (ITR)  Income Tax Return: What are the alternatives to Form 16 that can be used while filing ITR? «  Exporters get self-declaration power... No additional tax exemptions for petrochem hubs... » I-T to trap business class travellers October, 23rd 2006 There is no respite from service tax if you travel business class on your overseas journey. The revenue department has set out stiff terms for calculating service tax on club class fares. The 12.24% levy will apply even if the ticket is issued outside the country. Even the domestic sector linked to global travel would be subject to the tax, according to a circular issued by the department. Airlines, which had protested the imposition of the levy on all business class travel to international destinations, is upset at the move and is planning to petition the government once again. The location from which a ticket is issued is of no consequence, says the circular. If a ticket is issued outside India for an international journey commencing from India, say on the Delhi-London segment, service tax would be payable. Even if your uncle in the UK buys your ticket for an India-London-India journey, the revenue department wants its pound of tax. Airlines have been arguing that it is not fair to demand tax for a service bought outside India. Round-trip air tickets will attract service tax on the entire value of the ticket, says the circular. For example, if you travel India-Dubai-London-New York, the service tax will be applicable for the full value of the ticket. Airlines had demanded that service tax should be imposed only on the Delhi-Dubai leg, leaving the rest untouched. The Central Board of Excise & Customs has clarified that service tax would be levied on the total value of the ticket. The taxable value of service tax on global travel would also include the local sector. If you travel Delhi-Mumbai-London, for example, the tax would cover even the cost of your Delhi-Mumbai flight. Airlines had argued that domestic connections linked to an international flight should not be brought under the service tax net. The only relief is in the case of journey commencing from an airport outside India but includes a sector within the country. If a passenger travels Sydney-Mumbai-Dubai-Singapore-Sydney, no tax would be demanded. The clarifications from the revenue department have come in response to demands from the Board of Airline Representative (BAR) which represents both domestic as well as international airlines. Services provided by the aircraft operator to passenger embarking in India for international journey by any class, other than economy class, came under the service tax net from May 1. BAR had taken up the matter with the revenue department after some airlines were issued notices by the service tax department in Mumbai.