A/c travel by train turns more expensive

Hyderabad, Nov 16: With the imposition of 0.5 per cent 'Swachh Bharat' cess and a 14 per cent service tax levy from Sunday travelling by upper class in Indian railways has become costlier. Also, if one is travelling by first class and all AC classes, one has to pay levies of 4.35 per cent, according to a Rail Ministry circular. It may be recalled that the central government had issued a notification on November 6 asking for an imposition of a Swachh Bharat cess on all taxable services. In this connection, the Indian Railways circular said, "Service tax of 14 per cent and Swachh Bharat cess of 0.5 per cent are chargeable 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 service tax, the circular says, will not be applicable for tickets issued before November 15 and for general and sleeper-class travel. It is estimated that the service tax levy and the Swachh Bharat cess could fetch at least Rs 1,000 crore in a year to the railways coffers.