Mon, Jul 05, 2010
An Additional 10.3 Percent Will Be Tacked On To Each
A service tax of 10.3 per cent on the gross value of tickets
for all classes on domestic flights and economy class on
international flights will be levied on tickets sold, issued or
re-issued, effective July 1, 2010, as per the directive of the
Government of India, Ministry of Finance.
All domestic travellers would thus have to bear a service tax of
10.3% on the gross value of the ticket or Rs. 103 ($2.21),
whichever is lower. For economy class tickets for international
travel, a service tax of 10.3% on the gross value of the ticket or
Rs. 515 ($5.05), whichever is less, will be levied.
The service tax is only applicable on journeys originating in
India. This service tax as collected will be credited to the
Government of India Service Tax account. The gross value of the
ticket for the calculation of the service tax will include the base
price and fuel surcharge in addition to the congestion fee.
Passenger service fee and airport charges (UDF/ADF) will not be
covered for determining the gross value of the ticket.
The Indian international airline Jet Airways, and its all
economy subsidiary JetLite, said in a news release they will
collect this service tax under the tax code "JN". This is in
addition to the already existing collection of service tax for
international air travel for both Premiere and First Class
Airline crew travelling on duty and United Nations staff are
exempted from paying this service tax. This exemption will also
include those embarking on a journey originating or terminating in
an airport located in the states of Arunachal Pradesh, Assam,
Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Bagdogra
in West Bengal.
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