Hyderabad: Passengers to pay 6 per cent more on AC buses

Hyderabad: Passengers travelling in the TSRTC’s 300 air-conditioned buses will have to pay nearly 6 per cent more as service charge from Monday. This comes on top of the hiked tariff.

The RTC has started collecting service tax after securing a clarification from the Centre that it applies to only the A/C services. The money, estimated at Rs 10 crore per year, will go to the Centre. Passengers to Bengaluru will have to pay up to Rs 60 more and those travelling to Vijayawada Rs 35 more.

“How can the RTC simply pass the burden on to the passengers? It should absorb some of the service tax,” said passenger Rohan Raghuveer.

TSRTC managing director G.V. Ramana Rao said the corporation was running in losses and cannot take the burden of service tax.