GoI may lower Service Tax rate on international and domestic air travel: CBEC

According to a PTI report, at a post-budget seminar organised recently by Associated Chambers of Commerce and Industry of India (ASSOCHAM), V Sridhar, Chairman, Central Board of Excise and Customs (CBEC) said, “We are in talks with all carriers and other stakeholders on the Service Tax issue. The Government of India (GoI) may consider to lower Service Tax rate on international and domestic air travel. We should arrive at a rate which is not too excessive and should not pass undue burden (on passenger).” The Finance Minister Pranab Mukherjee in the Budget 2010-11 had proposed a Service Tax of ten per cent on both domestic and international travel.