TMI BlogTransportation of parcel traffic (leased or non-leased parcel traffic) by Rail — Levy of Service Tax — ClarificationsX X X X Extracts X X X X X X X X Extracts X X X X ..... istry of Finance as referred to above, the following instructions are issued. 2. Service Tax will be levied for transportation of all description of parcel traffic (leased or non-leased parcel traffic) and merchandise items (for commercial use) booked as Luggage with effect from 1 st October 2012. Luggage traffic i.e. personal baggage belonging to the travelling passengers, (excluding merchandise items for commercial use), shall be exempted from service tax. Commodities exempted from payment of service tax as per Ministry of Finance s Notification No. 25 of 2012 dated 20th June 2012 are (a) Relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; (b) Defence or military equipm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parcel traffic) issued on or after 1-10-2012 and it will be collected at the time of booking and preparation of Parcel Way Bill/Luggage Ticket/Money Receipt. 6. In case of undercharges or other charges, which are to be collected at the destination station, Service Tax at the stipulated percentage should be collected by the destination railway on such other components also. 7. To facilitate correct assessment, collection and payment of Service Tax, following instructions are issued : (i) FA CAO of Zonal Railways will get themselves registered online at the earliest and, in any case within 30 days time to get a Registration No. from the concerned Superintendent of Central Excise for proper accountal and remittance of Service Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls software will also print Applied For in the Computerized Parcel Way Bill till such time as CRIS CAO/PTS is intimated about their Registration Nos. by FA CAOs of Zonal Railways. (vi) It may be ensured that not only railway customers but also all lease holders should pay Service Tax along with freight/lumpsum leased freight/haulage charge. Further, where advance payment facility has been permitted they would be required to pay Service Tax along with the freight/lumpsum leased freight/haulage charge. (vii) It may be ensured that proper arrangements are made for up-keep of records from the initial stage itself for subsequent auditing by Service Tax Authorities. As each location would be audited periodically, system of correct ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und of either the WRF or Freight charges the corresponding service tax shall also be refunded. (xii) Since service tax due in case of undercharges detected at the destination station will be recovered by the destination station, the station will maintain separate record of service tax so collected. It shall also prepare a monthly statement showing customer-wise details of invoice, undercharges and service tax/cess collected thereon to be submitted along with the station balance sheet to Traffic Accounts office. 8. It is suggested that various documents like Service Tax, relevant notifications etc. may be obtained and all concerned may be made well conversant with the same. Such relevant documents/notifications etc may be availed on o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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