India trade outraged over new tax
TRAVEL agent associations have condemned the new service tax on air travel, imposed by the government (TTG Asia e-Daily, July 2).
Since July 1, all domestic travellers have to pay a 10.3 per cent service tax on the gross value of the ticket - base price, fuel surcharge and congestion fee - or 103 rupees (US$2.21), whichever is lower. The tax on international economy tickets has been capped at 515 rupees.
Travel Agents Association of India president Rajinder Rai said: "Agents already pay service tax so this results in dual taxation. We're consulting with experts on the legal implications and will take action based on the findings."
Agents pay a service tax of 1.26 per cent of the basic fare on international tickets and 0.62 per cent on domestic tickets.
(Sources: Anand and Madhura Katti, Mumbai, TTGAsia)
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