AC Rail fares to go up by 3.7 per cent from Oct 1 due to levy of service tax

In case of cancellation of tickets by the passengers, service tax will not be refunded by railways

Travel News
Travel News

Fares of AC First Class, Executive Class, AC-2 tier, AC-3 tier, and AC Chair Car will go up by 3.708 per cent from October 1 and a notification to this effect will be issued today, a senior Railway Ministry official said.

The decision for levying service tax on AC classes and freight and auxiliary services was taken yesterday at a meeting between Railway Minister C.P. Joshi and Finance Minister P. Chidambaram.

The service tax will apply to tickets issued in advance for journeys to commence on or after the date of its implementation. In the case of tickets already issued excluding service tax, it will be ensured that the same is recovered either by TTEs in the train or by the booking offices before the commencement of journey.

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