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A ride on Uber will cost its users 6-7 per cent more after the San Francisco-based firm revised its tariff upwards to cover the service tax imposed by the Centre on cab aggregators in India.
While Finance Minister Arun Jaitley had, in his Budget speech this year, imposed service tax on aggregators such as Uber and Ola for the first time, he also widened the tax net for radio taxi operators like Meru and EasyCabs.
Different tariffsIn a communication to its users, Uber said, “The fares you see in-app, on our Web site and on your ride receipts will be all-inclusive, as always. If you’d like an invoice with a tax breakdown, please download it by following the link in your ride receipt and login with your Uber credentials. Total impact of service tax on your current fares will be 5-7 per cent.”
Uber, which operates in 11 cities at present, charges different tariffs in these cities.
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