AC, in a first-class rail fares could rise from July

NEW DELHI: Prices of train passengers in all classes of AC first class and could increase by 3.6% from July 1, as there are few signs that the Treasury to extend tax exemption service on the railways of this source in the ministry month.Senior recognized that the rate increases inevitably looks like a train can afford to absorb the additional burden of Rs 5500 6000 RR, given its financial situation.
Sources say that the Railway Minister Mukul Roy wrote a letter to Finance Minister Pranab Mukherjee last week's request for exemption for railroads from paying service tax, but the request went unnoticed until now.
 
While the Board considered the fulfillment of conditions for railroad rate increases, they said, made ​​a new request to the board today, the Ministry of Finance of the campaign consideration.The put an additional burden on passengers classes of alternating current. The prices of AC-I and AC II, increased by 20% in the budget of this tax year.Service train passengers and freight was introduced in the general budget for 2009-10, but continued to maintain communication with the opposition, the railway minister Mamata Banerjee inches

The exception has since expanded on a quarterly basis, but this time the Ministry of Finance has decided to eliminate transportation costs and rail AC negative list, which receives the Internal Revenue Service and the rates burden release.With passenger are 70% subsidy, the effect of an increase in transport costs and rates of first class and AC-I, II and AC-AC-III is 3.6%.