|Service charge waiver to decrease IRCTC income by RailEnquiry Admin on 20 March, 2017 - 01:27 PM|
|RailEnquiry Admin||Service charge waiver to decrease IRCTC income on 20 March, 2017 - 01:27 PM|
Earlier Central Government announced to waive off the service tax from the tickets booked through IRCTC website. This decision is likely to hamper the revenue of the website which got a large chunk of its profit through service tax. It may also force government to opt out IRCTC from listing on stock market.
The decision to waive off service tax was to promote cashless transactions but as more than 40% of IRCTC revenue comes by charging a nominal fee on ticket booking therefore earnings in near future might take a dip.
IRCTC posted revenue of Rs.550 crore from ticket booking. Rs. 40 per ticket is charged by IRCTC on air-conditioned coaches and Rs.20 per ticket in sleeper class.