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TMI BlogLevy of Service Tax on Transportation of Goods by RailX X X X Extracts X X X X X X X X Extracts X X X X ..... r information: - FA & CAOs, All Indian Railways Rate Circular No./5 of 2012 GOVERNMENT OF INDIA (BHARAT SARKAR) MINISTRY OF RAILWAYS (RAIL MANTRALAYA) (RAILWAY BOARD) No.TCR/1078/201112 New Delhi, 27.06.2012 The General Managers, All Indian Railways. Sub:- Levy of Service Tax on Transportation of Goods by Rail. Ref:- Ministry of Finance Gazette Notification No 1 of 2006 Dated 1st March 2006 followed by Gazette Notifications I. 20 of 2006 dated 25th April 2006, II. 26 of 2006 dated 19th August 2009, III. 28 & 29 of 2009 dated 31st August 2009 IV. 33 & 34 of 2009 dated 1st September 2009, V. 8 & 9 of 2010 dated 27th February 2010, VI. 20,21 & 22 of 2010 dated 30th March 2010, VII.33,34 & 35 of 2010 dated 22"d June 2010, VIII.56 of 2010 dated 21st December 2010, IX. 20 of 2011 dated 30th March 2011 and X. 38,39 & 40 of 2011 dated 14th June 2011. XI. 7, 8 & 9 of2012 dated 17th March 2012. General: As per the Finance Bill 2010 and subsequent Gazette notification No 40 of 2011 on the subject, "Service Tax on 'Service provided in relation to transport of goods by rail' will come into effect from 01.07.2012 ". In compliance of the provisions contained in Finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... +15) Rs. 2215281 Note:-$ Wherever applicable Note:- Service tax shall be rounded off to the nearest rupee as per circular No.ST-53/2/2003 dated 27.3.2003. Illustration- B: (In Rs.) Distance Kms 650 Wagon BCNA CC of Wagon Tonne 66 Rake Length 42 Commodity Cement Class T/L 150 1 Freight per tonne Rs. 738.60 2 Freight rebate under WIS- @10% on Basic Freight=(1*10%) 73.86 3 Busy season surcharge @ 10% on Base freight = (1*10%) Rs 73.86 4 Normal Tariff Rate (NTR) = (1+3) Rs. 812.46 5 Normal Tariff Rate (NTR) per Rake=(4*42*66) Rs. 2252139.12 6 Development Charge @5% = (4*5%) Rs. 40.62 7 $Terminal Charge @ 40.00 per tonne per terminal Rs. 80.00 (applicable only in Railway owned Goods Sheds/Sidings) 8 Total Freight = (4+6+7) Rs. 933.08 9 Total Freight per rake = (8*42*66) Rs. 2586497.76 10 Freight rebate under WIS scheme = (2*42*66) Rs. 204739.92 11 Total Payable Freight per rake = (9-10) Rs. 2381757.84 12 30% taxable freight of the total value 714527.35 13 Add Service Tax @12% on 30% Freight (12 * 12%) Rs. 85743.28 14 Add Education Cess @2% of Service Tax (13 * 2%) Rs. 1714.87 15 Add Higher Education Cess @1% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion station, then service tax at the stipulated percentage should be collected by the destination railway on such other components also. viii It may be ensured that not only railway goods customers but also all Rail Operators such as Container Train Operators, SFTOs etc should pay Service Tax along with haulage charge. Further, where advance payment facility has been permitted they would be required to pay Service Tax along with haulage charge. Similarly, element of service tax is levy able where 'Weight Only' system is in vogue. ix. It may be ensured that proper arrangement be made for up-keep of record from the initial stage itself for subsequent auditing by Service Tax Authorities. As each location would be audited periodically, system of correct maintenance of records is pre-requisite for its proper implementation. x. Instructions may be communicated to the staff at all levels regarding the relevant provisions of this tax and they may be made conversant with the various provisions for effective and efficient implementation ofthe same. xi. On the written request from customers, CCM Office will issue a monthly consolidated certificate to be signed by an Officer authorized by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may be obtained directly from CBDT or accessed from website of Central Board for Direct Taxes (CBDT). 7. Instructions regarding Registration No, head of allocation, accounting procedure, system of making payment etc. are being issued separately by the Accounts Directorate. 8. Any modification in the policy made by Ministry of Finance from time to time will become applicable and will be notified accordingly. 9. The date of implementation of levy of service tax shall be intimated shortly. This letter issues as an advance intimation of the proposed levy of service tax. Zonal Railways may take suitable action accordingly. This issues in consultation with Finance Directorate of Ministry of Railways. D.A./ As above. (Aashimla Mehrotra) Jt. Director, Traffic Commercial (Rates) Railway Board No.TCR/1078/201112 New Delhi, 27.06.2012 Copy for information: - 1. FA & CAOs, All Indian Railways. 2. Deputy Comptroller and Auditor General oflndia (Railways), New Delhi. For Financial Commissioner (Railways) No.TCR/1078/201112 New Delhi, 27.06.2012 1) Chief Commercial Managers, All Indian Railways. 2) Chief Operating Managers, All Indian Railways. 3) Managing Director, CRIS, C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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