Applicability of service tax on loading & unloading of goods from trains.

[pankaj jain]

Dear sir,

my client (a labour co-operative society) renders service of loading & unloading of goods from trains . Service provider is a labour co-operative society & service receiver is Indian Railways . Contract amount ₹ 1500000 . Is service tax applicable to service provider ? Kindly help out .

[Ganeshan Kalyani]

In my view the service is liable to service tax.

[KASTURI SETHI]

I support the views of Sh.Ganeshan Kalyani Ji, an expert. Read Notification No. 26/12-ST as amended vide Notification No.8/16-ST for abatement. 70% abatement is admissible. Exemption for some goods i.e. milk, salt, food grain etc., agriculture produce and some other items is available under Mega Exemption Notification No.25/12-ST as amended. (Serial No. 20 refers.)

[KASTURI SETHI]

No exemption to co-operative society.

[Himansu Sekhar]

Service tax is applicable

AI Summary

Service tax on loading and unloading of train goods: taxable with abatement and limited exemptions; cooperative not exempt. The service of loading and unloading goods from trains by a labour co-operative society supplied to the railways is taxable; no exemption arises from co-operative status. A notified abatement applies to such services, and distinct limited exemptions exist for carriage of certain goods categories, which must be identified to determine the correct tax treatment.