Sunday, August 21, 2016

Air-Conditioned Buses in Bengaluru Feel The Heat

With service tax levied on air-conditioned carriage buses, commuters in Bengaluru who frequently use them as a mode of transport are now feeling the heat, with the already expensive bus fares rising by 6 per cent. The The Bangalore Metropolitan Transport Corporation (BMTC) and the Karnataka State Road Transport Corporation (KSRTC) have both launched an all out attack the service tax levied on bus fares. Due to the Union Budget buying over all state-owned transport corporations that come under this service tax bracket, the new regime has implemented a service tax of 15 per cent on 40 per cent of all revenues that are collected from air-conditioned bus services. While non-air conditioned buses are exempt, the tax burden on air-conditioned buses has been shifted to the commuters. Commuters that have been hardest hit by the rise in service tax are usually travellers who commute to and from the Bengaluru International Airport as well as the IT sector of the city. KSRTC MD Rajendar Kataria has however written to the ministry of finance asking them to reconsider their proposal.

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