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HindustanTimes Sat,25 Oct 2014

Railway ticket discount to be restricted to basic fare

Neha Arora, Hindustan Times   Jalandhar, December 11, 2012
First Published: 23:40 IST(11/12/2012) | Last Updated: 23:46 IST(11/12/2012)

The railway ministry has decided to restrict the discount on rail tickets to beneficiaries to the basic fare.

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From April 1, the concession will be given only on base fare component of the ticket, and it will not be provided on catering, reservation and supplementary charges.

Speaking to Hindustan Times, Neeraj Sharma, chief public relations officer, Northern Railways, said the concessions applicable in Rajdhani, Shatabdi, Jan Shatabdi and Duronto trains would not be granted on catering, reservation and supplementary charges, including superfast surcharge, enhanced reservation charges, and taxes for the these trains.

He said, "The catering charges for these trains were inbuilt as part of the ticket fare. As such, the taxes levied thereon need to be incorporated based on sector-wise calculations. The service tax changes year after year, so the tax element will be separated from the apportionment of catering charges and sector-wise service tax will be calculated separately."

He said while all other prevailing taxes -- VAT, general service tax and new taxes -- would be imposed under the governing law, the tax on catering services rendered in these trains where catering charges are included in the ticket fare, would be collected by railways from the passengers separately.

A railway reservation ticket includes basic fare, reservation charge, safety charge, service tax, additional superfast charge and catering charge.

Currently, beneficiaries get concession on catering, safety and other supplementary charges on such trains. But from April they would get concession only on basic fare while the charges would be taken separately on various services offered on the reserved tickets.

"The beneficiaries will now have to pay an additional amount of Rs. 80 to Rs. 100 on their tickets," Sharma said.

The concession in fare is availed by senior citizens, disabled, patients, medical professionals, war widows, students, artists, sportspersons and national awardees, which varies for each of these categories.

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