All those who have booked your tickets between March 1 and 31 for post April 1 travel don't be surprised if you are asked to pay extra money for your ticket at the airline's counter.

For, a circular issued by Air India has stated that the airlines will be collecting the difference in service tax from you at the airport itself. This will be applicable to both domestic and international travellers across categories. The circular states that the difference in service tax will only be demanded from travellers who booked their tickets through ticket agents. Those who booked their tickets directly from the airlines website or office will not be required to do so. Sources said it is so because when booking through an agent the money is not credited to the airline's account before the book of accounts are close on March 31. This is why those who booked the ticket directly through the airlines won't have to pay the difference.

A travel agent said that the new notification means international passengers will end up paying additional Rs2,000 per ticket. "This will also create chaos at the airport because the boarding pass will not be issued until the passenger shows a tax voucher substantiating that he has paid the difference in service tax. Many passengers may not be aware of the new rule and may be in for a rude shock," said Sanjay Shah of Flamingo Travels.

He said the problem with the new service tax is that it has done away with a minimum amount. "Earlier the service tax on international economy travel was 10.3% of the gross value of ticket or Rs773, whichever is less. But now it is 12.36% on 40% of (fare +taxes), which effectively comes to 4.99% which will turn out to be far more expensive," he said.

He said other airlines including international ones like Qatar and Emirates have also done the same thing. The service tax is decided by the government and we have to follow government norms. The rules remain the same for all airlines as far as service tax is concerned," said an official of Qatar airways. "For domestic travellers it will be comparatively less," he said.



Contact Details :=

Company Name : Flamingo Transworld Pvt. Ltd.
Address : 201/202, Gala Business Centre, Near Classic Gold Hotel, Off C. G. Road, Ahmedabad 380 009, Gujarat, India.
Contact Num : 09825081806
Email ID : [email protected]
Website : http://www.flamingotravels.co.in