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of <h1>Ministry of Railways Introduces 3.708% Service Tax on AC and First Class Rail Travel, Including Special Services.</h1> The Ministry of Railways has issued a circular mandating the levy of a 3.708% service tax on services rendered to rail passengers traveling by AC or First Class. This includes special trains or coaches on Full Tariff Rate (FTR), special trains for film shooting, first-class season tickets, circular journey tickets, and excess fare tickets for various circumstances such as journey extensions or ticket upgrades. The service tax applies to the total charges, including security deposits, with a proportionate refund of the tax upon the security deposit's refund. Immediate implementation instructions are to be issued to all relevant parties.
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