As per the corrigendum issued by the Ministry of Railways on 28th September (28/9/2012) some changes have been made in levy of Service Tax on the fare of passengers travelling in AC Classes/First Class from 1st October 2012. Ending all the speculations about the refund of service tax from the cancelled ticket the Railway Ministry has issued new guidelines. From 1st October, 2012 onward in case of cancellation of tickets booked by the passengers on or after 01.10.2012, the applicable amount including refundable Service Tax amount will be refunded by Railways as per Railway refund rules and Finance Ministry guidelines.
Further the notification of railway ministry says that the Service Tax on Railway Passengers Travelling in Ac Classes/First Class will be levied from 1st October 2012. No Service Tax to be Levied on Tickets Issued Prior to 1st October 2012. The Ministry of Railways has made partial modification in levy of Service Tax on the fare of passengers travelling in AC Classes/First Class from 1st October 2012. The
It has been clarified that the Service Tax would be collected on the tickets issued/bookings made on or after 01.10.2012. Service Tax is not leviable on tickets issued prior to 01.10.2012 and hence will not be collected on board the trains.
This past week the railways has announced to levy Service Tax in AC class fares fares amounting to 3.708% on the total fare of passenger services in (a) AC First (1st) Class, (b) Executive Class, (c) AC-2 tier Class, (d) AC-3 tier class, (e) AC Chair Car class, (f) AC Economy class and (g) First Class from October 1st, 2012.
The commuters were highly upset with the earlier proposed guidelines of Railway Ministry about the return of Service Tax after cancellation of reserved ticket. The railway notification was saying that the Service Ticket would not be returned at the reservation counter. The railway officials had told that after cancellation of ticket the passengers have to submit an application before Chief Commercial Manager (CCM) of Zonal Railway. After receiving the application the CCM was supposed to issue a certificate for return of Service Tax. The passenger was supposed to submit the certificate to Service Tax department to get the refund. However, the corrigendum made by Railways on September 28, 2012 related to cancellation of ticket has come as a big relief for railway travellers.
The commuters were highly upset with the earlier proposed guidelines of Railway Ministry about the return of Service Tax after cancellation of reserved ticket. The railway notification was saying that the Service Ticket would not be returned at the reservation counter. The railway officials had told that after cancellation of ticket the passengers have to submit an application before Chief Commercial Manager (CCM) of Zonal Railway. After receiving the application the CCM was supposed to issue a certificate for return of Service Tax. The passenger was supposed to submit the certificate to Service Tax department to get the refund. However, the corrigendum made by Railways on September 28, 2012 related to cancellation of ticket has come as a big relief for railway travellers.
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