Patel seeks rollback of service tax on air travel

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Patel seeks rollback of service tax on air travel

Postby admin » Wed Mar 03, 2010 4:16 pm

Civil Aviation Minister Praful Patel today sought complete rollback of 10 per cent service tax imposed on domestic air travel, while the CBEC said the rate should not be too heavy on airlines.

"We will request for a complete rollback of service tax," Patel told reporters in Hyderabad.

The Civil Aviation Ministry would take up the issue with the Finance Ministry, Patel said, expressing the hope that the latter would respond favourably to the Civil Aviation Ministry's representation.

The Chairman of Central Board of Excise and Customs (CBEC), V Sridhar, at a post-Budget seminar in New Delhi said that the government could consider a lower service tax rate on international and domestic air travel and is in talks with the airlines on the issue.
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