E-tickets are now almost the same price as the tickets bought in old-fashioned, standing-in-a-long queue way, albeit the service charges of Rs. 10 charged by your bank for the e-service.
On February 1, 2017, Finance Minister announced the Union Budget for the year 2017. Surprisingly, the Railway Budget was also announced along with the Union Budget this time. Among other things, Finance Minister Arun Jaitley announced that service tax levied on the e-tickets booked online through IRCTC is to be withdrawn.
Union Budget – IRCTC
Finance Minister has announced that the service tax levied
on the e-tickets will be removed soon.
When one books an e-ticket on IRCTC platform, certain amount of service tax is levied for the booking. Currently IRCTC levies a service charge of Rs. 20 plus service tax for second/sleeper class and Rs.40 plus service tax for all the other class such as First, second and third class AC, Chair Car, 3E and First class, irrespective of the number of passenger booked on an e-ticket.
What is the extra amount you pay for the e-tickets?
When you book a train ticket online in IRCTC, you pay
certain amount of extra charge for the service provided. Let’s consider an
example for a clear understanding.
wants to book a train ticket from Chennai to Bangalore in second class sleeper.
He finds that there is availability on IRCTC online platform and the e-ticket
costs Rs. 150. When he books the
e-ticket, the cost comes to Rs.180.23
(150+20+10+1.23). What is this extra amount?
The extra Rs. 20 is the service
charge and Rs.1.23 is the service
tax levied by the Indian Railway, Rs. 10 is the service charge
levied by your bank for the e-service provided and. In case of cancellation,
this extra amount (31.23 in Anil’s case) is not refunded hitherto.
As Finance Minister has announced, this service charge and
the service tax (Rs.21.23 in Anil’s case) will soon be removed for the
e-tickets booked. Hence while booking and upon cancellation, you save a
significant amount. This move is in tandem with encouraging people to move
towards a cashless economy.