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Service tax on catering services on trains
New
Delhi: A service tax has been imposed on the on-board catering services
of the Indian Railways. Service tax on catering services of Rajdhani and
Shatabdi Express trains has been included in the ticket fare. Accordingly,
the fare on these trains will increase. The service tax will be charged
by the licensee or departmental staff for other Mail/Express trains in
addition to food cost. The Indian Railway Catering and Tourism Corporation
Limited (IRCTC) is a public sector company set up and fully owned by the
Ministry of Railways. The IRCTC has been incorporated under the Companies
Act 1956. This company has been formed to function as an extended arm
of the Indian Railways to upgrade, professionalise and manage the catering
and hospitality services at stations, on trains and other locations and
to promote domestic and international tourism through development of budget
hotels, special tour packages, information, commercial publicity and global
reservation systems. the objective of upgrading and managing rail catering
and hospitality. Indian Railways, the largest of its kind in the world
with a workforce of about 1.5 million employees, can be easily described
as the life-line of the nation and its fast growing economy. About 13
million passengers benefit directly from the huge Indian Railways network
of 62,800 kilometers.
-April 18, 2006
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