Is Rail freight taxable under Service TAx ?

[Mr Rao]

Dear sir,

One client is showing some amount as RR freight (Rail freight ) under expenditure in his P&L account. Whether this amount is taxable under the provisions of Service Tax Provisions. If it is taxable from which period the same is taxable. Please reply.

AI Summary

Rail Freight Taxable Under Service Tax: Provider's Responsibility for Payment Since 2006 for Containers, 2009 for General Transport. A query was raised regarding the taxability of rail freight under service tax provisions. It was clarified that if rail freight appears as an expenditure in the Profit & Loss account, the service tax responsibility lies with the service provider. Rail freight for goods in containers became taxable from May 1, 2006, and for general rail transport from September 1, 2009. The service tax liability on rail freight is under a forward charge, meaning the service provider is responsible for paying the tax.