Air fares to Increase from Today
If you are traveling through air, you need to pay a little extra for your travel from today onwards as service tax kicks from today. for domestic travel you need to pay 103 and for International travel you need to pay 515 extra. Service tax will be charged as 10.3% or INR 103 which ever is low.
The Finance Act 2010 has since been passed, and the Government has notified on 22 June that the new levy will come into effect from 1 July. A notification has been issued regarding the concessional rate of Service Tax of Rs100 for domestic journeys and Rs500 for international economy class journeys. Another notification has been issued fully exempting from Service Tax journeys terminating or originating in the North-East sector. There is no concession for international journeys by first / business class, for which Service Tax continue to be charged at the normal rate.