India levies news service tax on domestic, international air travel(1)
By Yvonne Tan
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Jul 01, 2010
MUMBAI – A service tax of 10.3 percent on the gross value of tickets for all classes on domestic flights and economy class on international flights will be levied on tickets sold, issued or re-issued, effective July 1, as per the directive of the Indian government’s Ministry of Finance.All domestic travellers would thus have to bear a service tax of 10.3 percent on the gross value of the ticket or INR103 (US$2.21), whichever is lower. For economy class tickets for international travel, a service tax of 10.3 percent on the gross value of the ticket or INR515 (US$11), whichever is less, will be levied. The service tax is only applicable on journeys originating in IndiaThe gross value of the ticket for the calculation of the service tax will include the base price and fuel surcharge in addition to the congestion fee. Passenger service fee and airport charges (UDF/ADF) will not be covered for determining the gross value of the ticket. Airline crew travelling on duty and United Nations staff are exempted from paying this service tax. This exemption will also include those embarking on a journey originating or terminating in an airport located in the states of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Bagdogra in West Bengal. Payment of service tax will also be exempted for journeys originating in the state of Jammu and Kashmir from the airports of Srinagar, Leh and Jammu.
https://www.travelweekly-asia.com/Travel-News/India-levies-news-service-tax-on-domestic,-international-air-travel(1)