April 11, 2012 10:42 AM

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Govt: No higher service tax on air tickets purchased before April 1, 2012

The government has clarified that air travellers who have purchased their tickets before April 1 this year will not have to pay the higher service tax.

The Central Board of Excise and Customs said, some airlines are collecting differential service tax on tickets issued before 1st April 2012 for journey after 1st April 2012, causing inconvenience to passengers.

The CBEC said, in case the airlines have already collected extra amount as service tax and do not refund the same to the customers, such amount should be deposited with the government.

The rate of service tax was 10 per cent till March 31, but it has been increased to 12 per cent from April 1 this year.

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