AC bus tickets charges likely to increase
Posted on: 16/Jun/2016 3:18:52 PM
The centre has imposed service tax of 6 percent towards AC buses belonging to the state transport corporations. The Tamil Nadu government has so far not taken any call on this and hence this has led to a state of confusion among transport officials.
Over 22,800 AC buses are being functional under the Tamil Nadu state transport corporation in Chennai, Vilupuram, Coimbatore, etc. Out of these, over 260 buses are air conditioned.
The centre had recently hiked service tax from 14.5 percent to 15 percent. This has come to effect from 1st of last month. Hence, a hike in price of AC train fairs was imposed by 0.15 percent. Likewise, a hike of the range Rs 20 to 54 was imposed on AC Omni buses.
At this juncture, all the AC buses functional under the state transport corporation is to have 6 percent service tax. In the other state transport corporations, tax was imposed on 1st this month. However, so far, no decision is taken by the Tamil Nadu state transport corporation. On behalf of the Tamil Nadu state transport corporation, a sum of Rs 45 to 48 lakh rupees is being paid as service tax. Hence the corporation is now forced to impose 6 percent service tax and pay it to the centre.
Recently, M.R.Vijaya Baskar held a discussion meet with eight other managing directors of transport corporations. However, no decision was made regarding sales tax in AC buses. This has led to a state of commotion now.
Speaking about this, the secretary of association of Omni bus owners said that they have been implementing necessary sales tax according to the increase made by the centre. This time, there is hike of just 0.5 percent which is not a whooping sum. When the pay is for example Rs 500, a tax amount of Rs 25 will be applicable. Likewise, for a sum of Rs 900, the tax amount will be Rs 54.
