Global air traffic up 12% in May

New Delhi: Domestic and international air fares will rise by Rs 103 and Rs 515, respectively with a government notification to bring air travel into the service tax ambit coming into effect from Thursday.
Government had proposed in the 2010-11 Budget that 10 % service tax be charged on air travel aiming at raising Rs 600 crore and Rs 1,000 crore annually.
For domestic travel, 10% of the gross value of ticket or Rs 100 per journey, whichever is less would be charged from passengers travelling in any class—business or economy.
For international journey, it would be “10% of the gross value of the ticket or Rs 500 per journey, whichever is less, for passengers embarking in India for an international journey in economy class.”
Air travellers would be exempted from paying this tax on a journey originating or terminating in an airport located in the northeastern states and J&K.
01/07/10 Financial Express

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Categories: Foreign Jul 2010, Indian Aviation- In General Jul 2010