June 30, 2010 9:34 PM

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Air travel to get more costly from July 1st

Air travellers will have to pay more from tomorrow. Domestic will rise by 103 rupees and international air fares by 515 rupees. Government had earlier proposed in the 2010-11 Budget that 10 per cent service tax be charged on air travel aiming at raising 600 crore from the domestic sector and 1,000 crore from the international sector annually.The notification, issued by the Department of Revenue over a week ago, said that for domestic travel, 10 per cent of the gross value of ticket or 100 rupees per journey, whichever is less would be charged from passengers travelling in any class — business or economy.Air travellers would be exempted from paying this tax while embarking on a journey originating or terminating in an airport located in the northeastern states of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura and Bagdogra in West Bengal.They would also be exempted for journeys originating in Jammu and Kashmir from the airports of Srinagar, Leh and Jammu.

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