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Service tax imposed on mobile train catering units

Written by: Staff

New Delhi, Apr 18 (UNI) Rail travellers opting for food through on-board catering services now will have to shell out more money with the Finance Ministry imposing a Service Tax on it.

A Railway Ministry spokesperson today said the Department of Revenue under the Finance Ministry had imposed the Service Tax, which was announced in this year's General Budget.

Service Tax on catering services of Rajdhani and Shatabdi Express trains has been included in the ticket fare. As a result, the fare of Rajdhani and Shatabdi Express trains will increase accordingly.

Service Tax will be charged by licensee or departmental staff for other Mail/Express trains in addition to food cost.

Railway Minister Lalu Prasad may have spared the travelling passengers from any increase in ticket fare for the third consecutive time, but the Service Tax on mobile catering units in trains has ensured that food items will become costlier.


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