Over 4 % hike in upper class railway fares from tomorrow

Over 4 per cent hike in upper class railway fares from tomorrow

The levy will not be applicable for general and sleeper class travel.

However, the service tax will not be applicable for tickets issued before November 15.

Railway fares for travel in the upper class categories will go up from tomorrow as a service tax levy of 14 per cent and a Swachh Bharat cess of 0.5 per cent become effective.

According to a rail ministry circular, fares will go up by 4.35 per cent for First Class and all AC Classes from November 15. There was a notification by the government for imposing a Swachh Bharat cess on all taxable services on November 6.

“Service tax of 14 per cent and Swachh Bharat cess of 0.5 per cent are chargeable on 30 per cent total passenger fare equivalent on 30 per cent of total passenger fare equivalent to 4.35 per cent of the total fare on first class and all AC fares,” the circular said.