Is service tax applicable on Railway freight
This query is : Resolved
24 August 2010
Yes. service tax applicable.
24 August 2010
Please clarify me for the folloing... effect from which date?
who has to pay the S T to govt.. means is it directly paid by the benefisher or the serivce provider?
who has to pay the S T to govt.. means is it directly paid by the benefisher or the serivce provider?
24 August 2010
TRANSPORT OF GOODS IN CONTAINERS BY RAIL (OTHER THAN INDIAN RAILWAY)
Date of Introduction: 01.05.2006 vide Notification No.15/2006 dated 25.04.2006
Definitions:
“taxable service” means any service provided or to be provided to any person, by any other person other than Government railway 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; (section 65(105)(zzzp) of the Finance Act, 1994)
Value of Taxable Service:
The value of taxable service shall be the gross amount charged by the service provider for providing such service and the money value of any other consideration ( if any) received for providing such service. The value of taxable service shall be determined as per the provisions made under section 67 of the Finance Act, read with Service Tax (Determination of Value ) Rules, 2006
Who is responsible to pay Service Tax:
The service provider is responsible to pay se
rvice tax. However, in cases, where the provider of taxable service is located outside India and the recipient of service is located in India, the recipient of service is responsible for payment of service tax. The responsibility to pay service tax under such situations is determined by the provisions made under section 66A of the Finance Act, 1994, read with Taxation of Services (Provided from outside India and received in India) Rules, 2006
Scope of Service:
The proposed levy is on transport of goods in containers by rail. Service provided by Indian Railways is excluded. Suitable abatement for the amount paid by such service providers to railways for haulage services will be prescribed separately. The levy will, therefore, be restricted only to that portion of the consideration received and retained by the service provider for the services provided.
(Ref: Joint Secretary (TRU)’s letter D.O.F.No. 334/4/2006-TRU dated 28.02.2006)
Service-specific Exemption:
An abatement of 70% from the value of taxable services has been provided vide Notification No.1/2006 dated 01.03.2006 as amended by Notification No.20/2006 dated 25.04.2006
General Exemptions:
Sr.No.
Notification No.
Nature of exemption
1
16/2002
Services provided to United nations or any International Organisation
2
12/2003
Exemption to value of goods and material sold during the course of providing taxable service, subject to conditions laid down in the notification.
3
4/2004
Service provided to a developer of Special Economic Zone or Unit located in SEZ
4
6/2005
Exemption from service tax for taxable services upto gross value of Rs. 4 lakhs, in case of service providers whose gross turnover for the preceding financial year was less than Rs. 4 lakhs ( w.e.f 01.04.2005)
Date of Introduction: 01.05.2006 vide Notification No.15/2006 dated 25.04.2006
Definitions:
“taxable service” means any service provided or to be provided to any person, by any other person other than Government railway 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; (section 65(105)(zzzp) of the Finance Act, 1994)
Value of Taxable Service:
The value of taxable service shall be the gross amount charged by the service provider for providing such service and the money value of any other consideration ( if any) received for providing such service. The value of taxable service shall be determined as per the provisions made under section 67 of the Finance Act, read with Service Tax (Determination of Value ) Rules, 2006
Who is responsible to pay Service Tax:
The service provider is responsible to pay se
rvice tax. However, in cases, where the provider of taxable service is located outside India and the recipient of service is located in India, the recipient of service is responsible for payment of service tax. The responsibility to pay service tax under such situations is determined by the provisions made under section 66A of the Finance Act, 1994, read with Taxation of Services (Provided from outside India and received in India) Rules, 2006
Scope of Service:
The proposed levy is on transport of goods in containers by rail. Service provided by Indian Railways is excluded. Suitable abatement for the amount paid by such service providers to railways for haulage services will be prescribed separately. The levy will, therefore, be restricted only to that portion of the consideration received and retained by the service provider for the services provided.
(Ref: Joint Secretary (TRU)’s letter D.O.F.No. 334/4/2006-TRU dated 28.02.2006)
Service-specific Exemption:
An abatement of 70% from the value of taxable services has been provided vide Notification No.1/2006 dated 01.03.2006 as amended by Notification No.20/2006 dated 25.04.2006
General Exemptions:
Sr.No.
Notification No.
Nature of exemption
1
16/2002
Services provided to United nations or any International Organisation
2
12/2003
Exemption to value of goods and material sold during the course of providing taxable service, subject to conditions laid down in the notification.
3
4/2004
Service provided to a developer of Special Economic Zone or Unit located in SEZ
4
6/2005
Exemption from service tax for taxable services upto gross value of Rs. 4 lakhs, in case of service providers whose gross turnover for the preceding financial year was less than Rs. 4 lakhs ( w.e.f 01.04.2005)
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