New Delhi, Nov 15: Railway fares for travel in the upper class categories will go up from today as a service tax levy of 14 per cent and a Swachh Bharat cess of 0.5 per cent become effective.
According to a rail ministry circular, fares will go up by 4.35 per cent for First Class and all AC Classes. However, the service tax will not be applicable for tickets issued before November 15.
The levy will not be applicable for general and sleeper class travel.
With the hike, AC-I fares on mail and express trains from New Delhi to Mumbai will go up by Rs 206 while the rise is of Rs 102 for AC-III fares from New Delhi to Howrah.
On the Delhi-Chennai route, the increased fare works out to about Rs 140 for the AC-II segment.
According to an estimate, the service tax levy and the Swachh Bharat cess are expected to fetch about Rs 1,000 crore in a year and the annual earnings for railways from the passenger segment are estimated to be at about Rs 35,000 crore.
