2) First Class and Air-Conditioned Class Travel by Railways

Service tax on passenger travel and freight was introduced in the general budget for 2009-10, but was kept on hold due to the then railway minister Mamata Banerjee's opposition. Now after holding it back for years, govt. has finally implied service tax on first class and air-conditioned class rail travel. Though travel by lower class, suburban services and metros are exempted.

3) Travel and Holidays Bought From Online Portals

Air tickets and overseas holiday package bought from online portals would be subject to levy. A single ticket bought for many overseas destinations are also fully taxable. If the service providers, recipients and the tickets booked are in India, then it is taxable. But if you buy separate tickets for the for the London-New York-London leg of New Delhi-London-New York round trip in London, that leg is tax free, states tax experts from ET.