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Home » News » Business » IRCTC won’t charge Service Tax on Card Payments

IRCTC won’t charge Service Tax on Card Payments

May 31, 2016
in Business
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IRCTC won’t charge service tax on over the counter card Payments: Indian Railway Catering and Tourism Corporation, IRCTC won’t charge Service Tax on Card Payments hereafter. But, there are no changes for booking tickets online.

IRCTC won’t charge Service Tax on Card Payments
IRCTC won’t charge Service Tax on Card Payments | Representational image

IRCTC won’t charge Service Tax on Card Payments

The Indian Railways has announced that hereafter, from June 1, the passengers will not have to pay any service taxes on debit/credit card payments while buying tickets at the railway platform.

Till date (May 31, 2016): the passengers had to pay Rs. 30 service tax on all tickets bought at the Railway ticket counter. But, the service tax will remain to stay for online ticket bookings.

Related: ATM upgrades in India by September 2017: RBI to Banks

The Union Railway Minister, Suresh Prabhu said, “We will see a number of new initiatives that are set to overhaul the ailing Indian Railways. In the past 30 to 40 years, the Railways did not attract the investment as it should have considering the rise in the country’s population.”

S Venkatesan, a 72-year-old resident of Mylapore said to ToI as, “There are some counters which are dimly lit and in shady areas. There is always the fear of getting attacked when we carry so much cash. This is a welcome change as we can make the booking with the cards.”

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