Minor increase in AC, first class fares from Sunday

There will be minor increase in fares for those who travel by higher class or AC in long distance trains, due to introduction of Swachh Bharat cess from November 15 Stock Market Trading Tips

A circular issued by railways stated, "Service tax of 14 per cent and Swachh Bharat cess of 0.5 % are chargeable on only 30% of the total passenger fare — equivalent to 4.35% of the total fare in first class and all AC coaches." 

At present, the railways charge 4.2 % service tax on the total fare for first class/AC coaches. This has taken into account the last revision in service tax from 12.36% to 14% in the budget. 

So, there will be minor increase in fares — which will be equivalent to 0.15% of the total fare, sources added Himanshu Tiwari Astrologer Blog