Karnataka’s Airavat luxury bus service becomes costlier
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Airavat passengers will have to now shell out an extra 6% service tax.
The Central Government had proposed an additional tax of up to 15% service tax on luxury air conditioned vehicles during this budget announcement, but KSRTC had decided to levy 6% service tax, considering the number of passengers who travel in such high-end buses.
The fare is yet to be revised at ticket issuing machines and websites, that still display older ticket prices. Till the rates are updated, the excess tax will be collected manually and a separate ticket would be issued. This might lead to some inconvenience for a while, said that Chandrashekar, Traffic Controller, Mangalore Division.
This 6% fare hike will not benefit KSRTC directly, but be deposited to the Union Government coiffeurs; a separate account would be maintained in this effect, Chandrashekar added.
KSRTC has already issued a circular to all its divisions in this regard.
Private Bus operators, however, are exempt from this tax, as service tax had already been imposed on private players last year, said Sadananda Chatra, General Secretary, State Private Tourist Bus Operators Association.
