Abatement Applicability on service tax on Goods transported by Rail

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..... Abatement Applicability on service tax on Goods transported by Rail
Query (Issue) Started By: - PAWAN KUMAR SHARMA Dated:- 12-7-2011 Last Reply Date:- 29-7-2011 Service Tax
Got 4 Replies
Service Tax
We are using the transportation by Rail mode and transporter is charging Full rate of service tax on the same. Reply By Alok Kumar: The Reply: Dear Mr. Pawan , i believe that 30% abatem .....

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..... ent will be vailable to you on the said services being provided to you. please confirm with your service provider whether he is availing the cenvat credit or not. also check whether your goods fall under the exempted category or not. thanks, alok Reply By Alok Kumar: The Reply: dear mr.pawan , the effective rate will be 30% of the value of services. In other words 70% value of the GROSS Valu .....

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..... e services will be exempted / and not taxed. i correct my reply to this extent, and apologise for the inconvenience. thanks, alok Reply By pradeep khatri: The Reply: Service Tax FAQs - Kindly refer Appendix- 2 of Abatements 11 (zzzp) Transport of goods in containers by rail --- 30% Reply By dipsang vadhel: The Reply: 1. if you are transporting by Rail, transporter is Railway. I suppose th .....

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..... ere is no service tax on Transporation of goods by Rail. Railway do not charge service Tax uptill now. 2. Perhaps you have appointed some contractor for handling some material for u and transporatation of material is in scope of vendor, The contractor is transporting material for u by rail. This vendor is charging service Tax on entire amonut of Railway freight. Precise reason for this could be t .....

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..... hat he is not providing you transportation service but provide you support service in relation to your business and is taxable as " Business Support services". In case of Business support service, No abatement is available & contractor is required to pay service Tax @10.30% on entire value of such service. accordingly, The contractor is charging service tax form u. Hope the above will help in ana .....

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..... lyzing the transaction.
Discussion Forum - Knowledge Sharing .....

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