June 1, 2016 7:59 AM

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Marginal increase in AC train fare, 0.5 % 'Krishi Kalyan' cess on service tax

Those travelling in air conditioned coaches of trains will now have to shell out more from today, with the government deciding to impose 'Krishi Kalyan' cess of 0.5 per cent on service tax. A senior<br/><br/>Railway Ministry official said, the Krishi Kalyan cess of 0.5 per cent on service tax will be imposed on all AC class tickets, freight and parcel. He said the overall impact of service tax on AC train fare will be 0.15 per cent. The increase in service tax will be applicable on tickets issued on or after June 1 and not on tickets issued prior to 1st of June, a railway notification stated.<br/><br/>The service tax is not applicable to non-AC and Sleeper class travel. Imposing Krishi Kalyan cess on service tax from June 1 was part of Railway's budgetary proposals.

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