Sir.
A substantial part of an air ticket is , various govt taxes. If a ticket is cancelled, only the fare or part of it is refunded.
What happens to the taxes ? Does the airline actually pay the taxes charged on such tickets to the govt? Suppose a flight is fully booked on departure, and there have been 2% cancellations, does the airline pay taxes on 102% of the capacity ? Can one seek a receipt (linked to my PAN ) from the airline about the taxes paid to the govt( USED OR UNUSED TKT)
Anand
2 Answers
Dear Anand,
"The rules say that cancellation charge can’t be more than the basic fare plus fuel surcharge. Plus, the airline has to refund all statutory taxes along with User Development Fees (UDF) and Passenger Service Charges (PSF). It also can’t charge you to process the refund."
In accordance with new Reserve Bank of India guidelines, the refund amount is credited back to the source from which it was initiated. So if you booked using a credit card, refund will be to the same card.
Kindly read :
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Article - 3
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