New Delhi: Already upset with Centre's reforms initiative aimed at resurrecting the ailing economy, Monday could bring in some more surprises for the common man. Several services are expected to get costlier from today.

READ MORE: AC, freight fares to jump by over 3 pc

AC train fares to cost more

Train fares of all AC classes will become costlier from Monday. The new service tax of 3.708 per cent, as per the government notification, will be levied on AC First Class, Executive Class, AC-2 tier, AC-3 tier, AC Chair Car and freight.
    
Passengers travelling in AC-2 and AC-1 will be additionally burdened by the service tax as the fares of these classes were already hiked by about 20 per cent in April as part of the proposals of the Rail Budget 2012-13.
    
"No service tax will be levied on tickets bought before October 1. In case of ticket cancellation, the service tax component will be returned to passengers," a senior Railway
Ministry official said.
    
Besides, service tax will also be levied on auxiliary service such as catering and parking at stations. The government exchequer is expected to earn about Rs 3,000 crore from the service tax decision.
 
Service tax, which would also be imposed on rail freight will exempt petroleum products, foodgrains, pulses, fruits and vegetables and other essential items from its purview.
    
The decision comes within a week of Trinamool Congress, which was holding railway portfolio, exiting from the UPA government. TMC had been consistently opposing the service tax being levied on these services.

Passport fee hiked

Those applying for a passport now need to pay more. Government has decided to increase the Passport and related services fees from Rs 1000 to Rs 1500 under the normal category and from Rs 2500 to Rs 3500 under Tatkal scheme.

For Indian citizens living abroad, the revised fee would be $ 75.00 (from 40.00) and Euro 60.00 (from 48.00) for normal applications.

Mutul Funds get costlier

The reforms made by SEBI in regards to investments made in mutual funds are likely to be implemented from today. These reforms will help make investments in mutual funds safer and easier. However, it could become a little costlier in some cases.

JPN/Agencies


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