Thursday, July 01, 2010

No tax on fliers to NE and J&K

New Delhi: Domestic passengers flying in and out of the northeast and out of Jammu and Kashmir will not have to pay the 10.3% service charge on airfares that will be levied from Thursday.
The new cess for both business and economy domestic travellers will be Rs 103 or 10.3% of gross ticket value, whichever is lower. For economy class international flyers, it will be Rs 515 or 10.3% of ticket value, whichever is less.
Ticket value, for this purpose, will be determined by adding the basic price, fuel and congestion surcharges. Passenger service fee and airport charges (UDF/ADF) will be kept out of ticket value for this purpose.
The tax would be levied on tickets sold, issued or re-issued, from Thursday. Which means, travellers who have already bought ticket for flying after July 1 may not need to pay this additional charge. The tax is applicable on journeys originating in India.
A service charge of 10.3% is being collected for years from international travellers flying out of India in business and first classes.
01/07/10 Economic Times
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