Uber toes the line, will pay service tax

Web-based Cab aggregator Uber, has announced that it will collect and remit service tax on fares for all rides on the platform in accordance with the amendment made in the union budget 2015-16.

The company has revised it fare structure to cover the applicable service tax, which will be transferred to the Government of India. The new fares are inclusive of the tax amount.

Earlier Uber had refused to pay service tax and asked the authorities to collect the tax from its driver partners. However, the tax authorities wanted Uber to collect the tax amount and remit it to the government like other companies.

Uber has quietly started following the rules set by the Government of India, one-by-one. Over time, it has been made to introduce safety measures and forced to apply for a radio taxi licence. Just last month, the company, along with competitor Ola, was told by the authorities that its policy of surge pricing was illegal in Bangalore.

Here's a look at the new fare structure:

• UberGo - Base fare Rs. 45, Per km Rs. 8, Per minute Re. 1, Minimum fare Rs. 60
• UberX - Base fare - Rs. 70, Per km Rs. 10, Per minute Re. 1, Minimum fare Rs. 100
• UberBlack - Base fare Rs. 100, Per km Rs. 13, Per minute Rs. 1.5, Munimum fare Rs. 150
• Uber SUV - Base fare Rs. 100. Per km Rs. 13, Per minute Rs. 1.5, Minimum fare Rs. 150