LATEST NEWS
      
Today : Dhaka
 
36° C
28° C
  
 
  Volume: XX, Issue No. 02 September 1-15, 2010  
     
 
  AVIATION
  India launches new service tax on domestic, international travel

_A Monitor Report
New Delhi : A service tax of 10.3 per cent on the gross value of tickets for all classes on domestic flights within India and economy class on international flights from India 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 within India will therefore have to bear a service tax of 10.3 per cent on the gross value of the ticket, or Rs. 103, whichever is lower.

For Economy Class tickets for international travel, a service tax of 10.3 per cent on the gross value of the ticket or Rs. 515, 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.

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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
© 2001-2009, All rights reserved, The Bangladesh Monitor, City Heart (9th Fl), 67 Naya Paltan, Dhaka-1000, Bangladesh;
Telephone: 88-02 - 8351148, 9334963, 9330676 Fax: 880 2 8314306; Web: http://www.bangladeshmonitor.net, Email: news@bangladeshmonitor.net, monitor@bangla.net
monitor@bol-online.com; Publisher: Syeda Gousia Abed, Chief Editor: Raquib Siddiqi, Editor: Kazi Wahidul Alam; Printed at Prime Art Press Ltd. 70, Naya Paltan, Dhaka-1000.