The Central Government has announced Date of Introduction of new regime of Negative List approach in Service Tax, which will apply with effect from 01.07.2012 i.e. service tax would be applicable on all services except those mentioned either in the Negative List or in the Mega Exemption List.
With immediate effect, Service Tax will be applicable on following services or related collections which are part of transport of passenger by air.
|Services||Rate of Service Tax|
|Collection as part of transportation of passengers||4.944% (Abated rate)|
|Charges recovered for “agreeing to provide service”||12.36%|
|Charges or Fees related Tickets||Rate of Service Tax|
|Date Change Fee or Rebooking Fee||4.944%|
|Difference in Fare||4.944%|
|Any charges for FFP services||4.944%|
|Ticket Cancellation Charge/Fee||12.36%|
|Refund Administrative Fee||12.36%|
|No-show Fee when ticket is put for refund||12.36%|
|No-show Fee is collected along with rebooking fee when passenger is no-show and changes date of travel||4.944%|
Pls note that Charge and Fee have the same meaning.
As per provisions of Service Tax, the tax on ticket related collection will be applicable for taxable air transportation journeys starting in India. As a thumb rule, Service Tax (JN) on related collections will be collected against tickets where JN is already applicable and collected on the ticket. The amount of Service Tax will be calculated manually. The amount collected is to be added to the existing amount against code “JN”
Please be advised with effect from 18th July, 2012, as per directives from Government of India, a Service Tax of 4.944% will be applicable on all fees/charges/ penalties & RAF for all cabins on Jet Airways & JetKonnect. This Service Tax will be applicable for the following services transacted in India for all journeys plated on the 589/705 documents.
In case of reissues, refunds, Service Tax must be computed manually and added to the applicable penalty amount.
Optional Payment Charge (under “OB” Tax code) given in the table below is inclusive of Service Tax of 4.944% and no manual calculation/collection will be required.