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Is 510 for "taxes" on this one-way award correct!?

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Old Jul 2, 08, 12:56 pm
  #1
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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!
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Old Jul 2, 08, 1:19 pm
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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
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Old Jul 2, 08, 1:31 pm
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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
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Old Jul 2, 08, 2:15 pm
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Thanks guys.
Originally Posted by Xevus View Post
Tax: Indian Service Tax on First and Business Class Travel INR 20315 (238 GBP)

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.
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...
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Old Jul 2, 08, 2:22 pm
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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.

Last edited by jbfield; Jul 2, 08 at 2:30 pm Reason: found the threads and added the links
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