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himmat01
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Joined: 19 Dec 2006
Posts: 1392
Location: DEL
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 Posted: Fri Jan 05, 2007 1:10 pm Post subject: Economy Class passengers may have to pay Service Tax. |
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Reported in ET.
http://tinyurl.com/ybu4nf
| Quote: | The party for low-cost air travelling may soon be spoiled. The finance ministry is examining the possibilities of bringing economy air travellers under the service tax net.
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How dumb can the babus in finance ministry get? Instead of offering tax breaks and reducing excise and sales tax on ATF they come up with this stupid idea of service tax on Y class tickets.
The service tax will be imposed on the base fare and not the discounted fare. If the base fare for BLR-DEL is Rs. 12000.00 the passenger would end up paying Rs. 1468.00 as service tax even if he purchases the ticket at a discounted fare of Rs. 5000.00.
This tax reminds me of the old IATT(Internal Air Travel Tax) which used to exist upto 2000. I hope that this idea is not taken up by the Finance minister.
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Nimish
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Joined: 16 Dec 2006
Posts: 9757
Location: Bangalore, India
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| Posted: Fri Jan 05, 2007 2:35 pm Post subject: |
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This is really getting to the limits!
First I pay 33% Income tax on all income
Then all goods I buy - I have to pay a myriad of taxes
Then most services (phone, courier etc.) are taxed at obscenely high rates - I think the current service tax is 12 or 13% and there are talks of making it 15% by next FY.
And now - flights are also to be taxed at this obscene service tax rate! If the GoI is really serious about extracting money from the non-IT payers (the stated goal of service tax), they should tax the 2nd class train travel, the monthly train passes etc. as well. That's when they'll reach their goal of extracting revenue from all Indians... The GoI is really  these days  |
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the_380
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Joined: 19 Dec 2006
Posts: 2329
Location: Mumbai, India
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| Posted: Fri Jan 05, 2007 5:28 pm Post subject: |
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| Nimish wrote: | | The GoI is really these days |
They want to generate more income...don't ask me why. The source now is air traffic. With a lot of air passengers they can earn quite a lot. They might not be taxing Service Tax to train passengers ( i dunno) again vote bank involved here.
Do they want to ruin this country?
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