Procedure Order for Implementing Service Tax Refunds on Passenger Fare Tickets Booked and Cancelled on or after 01.10.2012.

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAILWAY BOARD

No.TCII/2910/2012/Service Tax

New Delhi dt. 29.09.2012

Commercial Circular No. 60 of 2012

The General Managers,
All Indian Railways

Subject: Procedure Order for Implementing Service Tax Refunds on Passenger Fare Tickets Booked and Cancelled on or after 01.10.2012.

   This refers to Commercial Circular No.59 of 2012 on the levy of service tax on transportation of passengers by Rail in Air-conditioned classes and 1 AC Class. The following has been stated therein:

Levy of Service Tax on Railway Passengers Travelling in AC Class/First Class from 1st October 2012.

   In compliance of the provisions contained in Finance Bill 2012 and subsequent notifications issued by Ministry of Finance, the Service Tax in case of railway travel, which was exempted upto 30th September 2012, will be levied on the fare of passenger services in the following classes from 1st October 2012.
 
   (i) AC First Class, (ii) Executive Class, (iii) AC-2 tier Class, (iv) AC-3 tier class, (v) AC Chair Car class, (vi) AC Economy class and (vii) First Class.
 
   Since an abatement of 70%  has been permitted on passenger services by Ministry of Finance,  the Service Tax will be charged on 30% of total fare including reservation charge, development charge, superfast surcharge which would be calculated as follows:-