Is £510 for "taxes" on this one-way award correct!?
Jul 2, 2008, 11:56 am
#1
Moderator: GLBT travelers, India-based Airlines and India; FlyerTalk Evangelist
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Join Date: Jan 2004
Location: Asia
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Posts: 15,512
Is £510 for "taxes" on this one-way award correct!?
So I just booked a Z10-Z3 one-way award:
DEL-MUC/x-YUL-YYZ
with the long hauls on LH and the domestic on AC.
I have been quoted (and paid) just over £780 for the miles & cash award. This includes £270 as the cash portion and £510 (apparently!!) as the tax portion.
Is it at all possible to check if this tax calculation has been computed correctly??
Thanks!
DEL-MUC/x-YUL-YYZ
with the long hauls on LH and the domestic on AC.
I have been quoted (and paid) just over £780 for the miles & cash award. This includes £270 as the cash portion and £510 (apparently!!) as the tax portion.
Is it at all possible to check if this tax calculation has been computed correctly??
Thanks!
Jul 2, 2008, 12:19 pm
#2
Join Date: Oct 2007
Location: MOW
Programs: SU Bonus, SK EBG, BD Silver, HH Diamond
Posts: 407
ITA for this route shows this
Tax: Indian Service Tax on First and Business Class Travel INR 20315 (238 GBP)
Tax: Indian Passenger Service Fee $5.70
Tax: LH YQ surcharge €200.00 (160 GBP)
Tax: German Airport Security Tax €4.85
Tax: German Passenger Service Charge €16.34
Tax: AC YQ surcharge C$35.00
Tax: Montreal Trudeau Airport Improvement Fee C$20.00
Tax: Canadian Goods and Services Tax C$1.00
Tax: Quebec Sales Tax C$1.58
So, while 510 quid sounds a bit much, i suspect that Indian Tax is based on amount of full fare ticket in respective service class, so this looks like biggest culprit. My suggestion is to try to add additional connection somewhere near India, and take that leg in coach.
P.S. Found this as confirmation - http://www.thehindubusinessline.com/...1902760800.htm
Tax: Indian Service Tax on First and Business Class Travel INR 20315 (238 GBP)
Tax: Indian Passenger Service Fee $5.70
Tax: LH YQ surcharge €200.00 (160 GBP)
Tax: German Airport Security Tax €4.85
Tax: German Passenger Service Charge €16.34
Tax: AC YQ surcharge C$35.00
Tax: Montreal Trudeau Airport Improvement Fee C$20.00
Tax: Canadian Goods and Services Tax C$1.00
Tax: Quebec Sales Tax C$1.58
So, while 510 quid sounds a bit much, i suspect that Indian Tax is based on amount of full fare ticket in respective service class, so this looks like biggest culprit. My suggestion is to try to add additional connection somewhere near India, and take that leg in coach.
P.S. Found this as confirmation - http://www.thehindubusinessline.com/...1902760800.htm
Jul 2, 2008, 12:31 pm
#3
Join Date: Jan 2005
Location: SIN 5 days out of 7
Programs: BD*G, A3*G, BA-S, Accor Gold, IHG Amb
Posts: 5,505
From Xevus' link, for anyone unable to load the page.
Clarifying the Government's position, an official notification issued on Tuesday states that in case the international journey also includes travel on a domestic sector as part of the journey then also the service tax would be levied on the entire value of the ticket.
The CBEC, however, has clarified that service tax would not be levied in one case — if the journey begins outside India and is completed outside the country although the passenger may transit through India. Thursday, Oct 19, 2006
Jul 2, 2008, 1:15 pm
#4
Moderator: GLBT travelers, India-based Airlines and India; FlyerTalk Evangelist
Original Poster
Join Date: Jan 2004
Location: Asia
Programs: Yes!
Posts: 15,512
Thanks guys.
Hmmm, BA award tickets ex India, do not incur the above tax portion.
Infact, the exact same routing with LH using LH miles is also showing a tax of just under £300, and does not include the service tax (which is a % of the fare, that is technically zero for an award ticket!)
Any suggestions on if/how to pursue this further...
Infact, the exact same routing with LH using LH miles is also showing a tax of just under £300, and does not include the service tax (which is a % of the fare, that is technically zero for an award ticket!)
Any suggestions on if/how to pursue this further...
Jul 2, 2008, 1:22 pm
#5
Join Date: Jan 2005
Location: SIN 5 days out of 7
Programs: BD*G, A3*G, BA-S, Accor Gold, IHG Amb
Posts: 5,505
This topic has come up before. I will see if I can find the thread.
It essentially relates to the way bmi treats the ticket value - as an unrestricted full fare so the tax which is based on the ticket value is much higher.
BA and other treat it a bit more realistically after I believe people complained.
People here have complained but it's obviously not been resolved.
Here's the thread I was thinking of:
Awards out of India / Watch out for extreme tax-claim from BMI
http://www.flyertalk.com/forum/showthread.php?t=655430
A more recent occurence was reported in this thread:
Taxes have Become TAXES!
http://www.flyertalk.com/forum/showthread.php?t=803619
but the first link gives more detail.
It essentially relates to the way bmi treats the ticket value - as an unrestricted full fare so the tax which is based on the ticket value is much higher.
BA and other treat it a bit more realistically after I believe people complained.
People here have complained but it's obviously not been resolved.
Here's the thread I was thinking of:
Awards out of India / Watch out for extreme tax-claim from BMI
http://www.flyertalk.com/forum/showthread.php?t=655430
A more recent occurence was reported in this thread:
Taxes have Become TAXES!
http://www.flyertalk.com/forum/showthread.php?t=803619
but the first link gives more detail.
Last edited by jbfield; Jul 2, 2008 at 1:30 pm Reason: found the threads and added the links