AC Train ticket fares may increase from April 1.

AC Train ticket fares may increase from April 1.

Mumbai: First-class season ticket fares may increase along with a marginal hike in higher classes of train travel due to a proposal in the Union budget 2015-16 for an upward revision in service tax to 14%. The new fares with service tax will become applicable from April 1.

As of now the service tax is 12.36% but the railways are entitled to 70% rebate on passenger fare. The service tax applicable now for higher class of travel, except general and sleeper class, is 3.71%. A railway official said, “At 14% service tax, railways after deducting the 70% exemption, will charge 4.2% only, which includes education and higher education cess.”

A total of 7 lakh commuters travel by the suburban system on both CR and WR. A senior official said, “As the general budget has proposed a higher service tax, the fare for season ticket will increase by minimum of Rs 5 and maximum of Rs 10 for 60 km travel by first class.”

The service tax will be applicable to AC first class, executive class, AC-2 tier, AC-3 tier, AC chair-car, AC economy class apart from first class. A WR official said, “The fares of Mumbai Central-New Delhi Rajdhani would increase by Rs 10 for three-tier AC and Rs 15 for two-tier AC.”

Another official said there is no such intimation and the budgetary proposals are yet to be debated and approved by the Lok Sabha. “It is too early to speculate as the railways may also get an exemption from this hike.”

The revised fares will not be applicable to passes bought before April 1.