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Our Bureau

New Delhi, April 19

While food from catering units is likely to get costlier in the Indian Railways due to imposition of service tax, the fares of Rajdhani and Shatabdi Express trains would also go up as their fares includes charges for food and beverages. "The service tax imposition would only be on the value-added portion of caterer," said the Railway Board Chairman, Mr J.P. Batra. As per the Department of Revenue, Ministry of Finance notification, a service tax has been imposed on the on-board catering services of Indian Railways. It added that service tax would be charged by the licensee or departmental staff for other mail/express trains in addition to food cost. — Our Bureau

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