TMI BlogWHETHER INDIAN RAILWAY IS A PERSON IN SERVICE TAXX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear all, In chhatisgarh, I have come across cases where SCN is issued to Railway as a service provider for "renting of i mmovable property service." Under sub-clause (zzzz) of section 65(105) of the Act, the taxable service is defined as any service provided or to be provided to any person, by any other person, in relation to renting of immovable property for use in the furtherance of business o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r commerce. I have come across several cases where the Railway is the service receipient and SCN is issued to service provider under different taxable services. Further in the taxable service of Transportation of Goods by Rail service upto 31.08.09 the taxable service read as under. "Taxable service means any service provided or to be provided to any person,by any other person other than Govt. Rai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lways as defined in clause (20) of Section 2 of the Railways Act,1989, in relation to transport of goods in containers by rail, in any manner. W.e.f. 01.09.09 the amended section 65(105)(zzzp) of the Act defines the taxable service as follows: Taxable service means any service provided or to be provided to any person,by any other person ,in relation to transport of goods by rail, in any manner. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This means that some how or other the CBEC Service tax authority is of the opinion that Railway is a person the service provided/received by the indian railway is also taxable. Kindly discuss this issues. Regargs CA. Rajesh Mangal - Reply By Rama Krishana - The Reply = Yes, Indian railway is a Person beyond any doubt. They are liable to pay service tax if otherwise falling within the scop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of service tax. Don't you thing this matter has been settled long ago and therefore, they are also liable to pay other taxes also wherever is applicable like Sales Tax / VAT and other local taxes. They are also liable to excise duty or customs duty. The definition of Person in Income Tax is inclusive one and covering all the person. - Reply By DEV KUMAR KOTHARI - The Reply = With reference to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observations of learned Shri Rama Krishana, I would like to mention that definition of person under Income -tax Act is not adopted for service tax. Even under wider definition of person' under IT Act, Indian Railways is not a person as such in capacity of assessee liable to pay income-tax. Pay Officers Indian Railways or any Government Departments are considered tax deductor. In provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions relating to TDS words used are ' Any person responsible for paying...' and the pay officer is considered as person responsible for paying the sum and deducting tax. VAT and Sales Tax are levied by State Governments. There different expressions like dealer, registered dealer, unregistered dealer, contractor, .. etc. are used In those case tax is tax on transaction of sale or purchase of g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods by a dealer etc. Indian Railways, while purchasing goods or selling goods may be a dealer in that context and liable to pay tax on purchases and sales. However, in my view that will not make Indian Railways as person receiving service or rendering service. While levying service tax on some services provided by Indian Railways different expressions were used. When expression any person ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ..... rendering service is used, Indian Railways will not fall in the category of person. My article on the subject has also been web-hosted on this website recently. Which can be referred to for further details. - WHETHER INDIAN RAILWAY IS A PERSON IN SERVICE TAX - Query Started By: - RAJESH MANGAL Dated:- 17-10-2010 Service Tax - Got 2 Replies - Service Tax - Discussion Forum - Knowle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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