Railways modifies move on Service Tax..
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Service tax on AC class train fare will not be realised on tickets purchased before October 1 as railways modified its earlier decision on it.
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Since service...
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tax is leviable from October 1, it will be collected on the tickets issued on or after that date.

Service Tax only on tickets sold after October 1
NEW DELHI: Service tax on AC class train fare will not be realised on tickets purchased before October 1 as railways modified its earlier decision on it.
Fares of AC First Class, Executive Class, AC-2 tier, AC-3 tier, AC Chair Car will go up by 3.708 per cent from October 1 with the service tax coming into force on these services.
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service tax is not leviable on tickets issued prior to October 1, and it would not be collected on board and railways have modified its earlier order on it," said a senior railway ministry official.
"Since service tax is leviable from October 1, it will be collected on the tickets issued on or after that date," he said. The earlier order stated that the service tax will apply to tickets issued in advance for journeys to commence on or after the date of its implementation. "In case of tickets already issued excluding service tax, it will be ensured that the same is recovered either by TTEs in the train or by the booking offices before commencement of journey," as per the earlier notification issued by railways.
Besides AC fares, railways is levying service tax on freight and auxiliary service such as catering and parking at stations. The service tax is 12.36 per cent but after adjustment of 70 per cent of this, it will effectively be 3.708 per cent on passenger fares in AC classes and freight services.
It is expected that the exchequer will be richer by about Rs 3,000 crore from service tax on AC fares and freight.
In case of cancellation of tickets, service tax will be refunded by railways, the official said. Passengers travelling in AC classes were brought under service tax from July this year as per the Finance Bill 2012 but the levy had since been kept in abeyance because of opposition by the TMC.
It was decided after a meeting between lC P Joshi and finance minister P Chidambaram here.

#ServiceTax :
Now it seems railways have charged everybody flat 30% of 12.36% of Fare Payable by single person:
Let us take example of 3A fare from Ahmedabad to Chennai in Superfast Navjeevan express:
For Normal Adult:1285 +30+25= 1340
Fare...
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considered for Taxing: 1340
Rate of Service Tax:12.36% (12+0.72+0.36)
Rate of Service Tax on Railway Ticket 30% of Service Tax Rate/Amount
WORKING OF SERVICE TAX CHARGED:
1340x12.36% =Rs.165.624p
and 30% of ST=Rs.49.6872.
rounded off to nearest rupee=Rs.50...
Thus 1340+50=Rs.1390.00p
CONCESSION FARE FOR SENIOR CITIZEN:
Let us take example of 3A fare from Ahmedabad to Chennai in Superfast Navjeevan express:
For Normal Adult:1285 +30+25= 1340
Fare considered for Concession= 1285-60 (safety charges?)=1225.
Amount of Concession:40% of Fare 1225=490
Amount for Taxing=1285+30+25-490= 850
Rate of Service Tax:12.36% (12+0.72+0.36)
Rate of Service Tax on Railway Ticket 30% of Service Tax Rate/Amount
WORKING OF SERVICE TAX CHARGED:
850x12.36% =Rs.105.0600p
and 30% of ST=Rs.31.5180p
rounded off to nearest rupee=Rs.32.00p...
Thus 1340+ST Rs.32 -concession 490=Rs.882.00p
Here Railways gives concession on 1125 which seems Base Fare, but Charges Service Tax on 1285, which seems inclusive of Safety charges as well.
Thus in short Base fare plus all 'additional charges' are added and service tax of 12.36% is applied.
So thus concession to Female Senior Citizen @50% is to be worked out...
Hope now it is clear.
only 30% of the service tax is collected NOW.
Because next year: some Govt will increase it to 50%....