New Delhi: IRCTC News: The indian railways to hike the amount on AC and the First class tickets by 0.5% from the June 1st, 2015. The indian railways has stated that the railway charges for First class and AC ticket fares are going to increase for the passenger trains as the new service tax have come in to the account.

Currently they are charging about the 3.708 percent service tax on the First and Ac class tickets. Now from the June 1st 2015, the service tax are going to be increased by the 0.5%. So every passenger will have a burden to pay the service tax imposed on them.

Indian Railways to hike AC and First class fares by 0.5 from June 1st

According to the current service tax layed on the every citizen. Each passenger will have to pay the tax about 4.208% of the total amount payable.

Indian Railways to hike AC and First class fares by 0.5% from June 1st

As the new service tax get commend in to the rule the people have been notified with the hike of fares. Even though the increase of the fares was about the 0.5% makes a total of about 4.208%, the hike in the fares may not effect the Passengers. The increase in the service tax was just a small increase in the system. If the ticket fare may be of about 500 rupees then a 5 rupee increase in the Service tax according to the current tax system.

Increase in service tax will be applicable on tickets purchased from June 1st  onwards.

While the increase in the passenger fare is applicable only on the AC and First Class tickets only, service tax will be applicable on all goods transported by Railways.

The officials said that passengers should not fear about the hike in the Ticket fares as the hike in the tickets is marginal and it has been done as per the General Budget proposals.

The revised fare will not be applicable to those who have already booked the ticket before June 1.

The senior railway officials said, As a result, the fare for season ticket may increase by minimum of Rs 5 and maximum of Rs 10 for 60 km who would travel by AC and the first class.

Increase in Tax effects the following class tickets

The service tax hicked will be applicable to

  • AC first class, executive class.
  • AC-2 tier class.
  •  Ac-3 tier class.
  • AC chair car class.
  • AC economy class apart from First class.

The fares of Mumbai Central-New Delhi Rajdhani express would also get increased by Rs 10 for 3-tier AC and Rs 15 for 2-tier AC.