Travellers from India have started paying higher ticket charges starting April 1 with the Indian government's announcement of increase in service tax for those travelling by air.
In a circular (a copy of which is with Muscat Daily) issued by India's national carrier Air India to all travel agents in Oman, the airline stated that due to changes in provision of service tax announced by Government of India in notification No 06/2012 dated March 17, 2012, all tickets issued after April 1 will be levied a 12.36 per cent charge on 40 per cent of the gross value of the ticket, which includes fair, fuel and insurance surcharge.
Before April 1, the service tax was 10.3 per cent of the gross value of the ticket.
Oman Air too has started charging extra to meet the amended rates. Phillip Georgiou, chief officer, corporate communications, Oman Air, said that the airline is following Government of India directives. "We are charging passengers the service charge as per the government's decision, which applies to all airlines.
"The fee is levied at the time of purchasing the ticket."
There were reports that a few international airlines operating out of India had started charging the passengers extra service tax on tickets booked after March 16. The passengers were forced to shell out additional money at the time of check-in.
An Air India official, who didn't want to be identified said that the confusion arose as in the first circular issued to airlines the applicable ticketing date for new tax was with immediate affect. "A revised circular was issued which rectified the error making the ticketing date as April 1."
© Muscat Daily 2012
