IRCTC Waives Service Charges (not Service Tax) on Rail Tickets
IN order to help passengers and incentivise online payments, Service charge has been waived off by IRCTC on booking of E-tickets and I-tickets from 23rd Nov 2016 to 31st Dec 2016.
IRCTC levies a service charge of Rs.80/- for SL,2S and Rs.120 for all other Upper classes plus service tax on I-tickets. IRCTC also levies a service charge of Rs.20/- (Second / Sleeper) and Rs.40/-per e-ticket in case of all other classes(1AC,2AC,3AC,CC,3E,FC) plus service tax irrespective of the number of passengers booked on an e-ticket.
This service charge is now waived till 31st December 2016.
But most of our famous newspapers reported this as waiver of service tax. This is how some of them reported the news:
1. Financial Express: Service tax waived for online train ticket booking till December 31.
2. Times of India: Service tax waived for online train ticket booking till Dec 31.
3. Hindustan Times: No service tax on train tickets booked through IRCTC till December 31.
4. Zee News: In a move to encourage cashless transaction following the demonetisation of Rs 500 and Rs 1000 notes, the government has waived off the service tax for online booking of train tickets via the IRCTC website.
5. The Hindu Business Line was very expressive and authoritative when it reported: The government has waived service tax to encourage cashless transactions in the wake of the demonetisation exercise. Service tax will not be levied on tickets booked through the IRCTC website from November 23 to December 31, said a senior Railway Ministry official. Rs. 20 is levied as service tax on Sleeper and Rs. 40 on AC classes for booking tickets through IRCTC. Service tax has been waived to incentivise cashless transactions through online booking, the official added.
6. Business Standard: Railways waives off service tax for booking online tickets.
Obviously, they do not know the difference between service tax and service charge and thousands of well informed readers depend on these newspapers for enlightened news.
Incidentally, the old Rs.500 and Rs.1000 notes can be used for purchase of tickets at railway ticketing counters till the midnight of November 24, 2016 unless, of course, the date is again extended.