TaxTMI 
TaxTMI 
TaxTMI 
Fin. Minister has extended levy of SERVICE TAX ON RAIL FREIGHT w.e.f. 01-09-2009. my query is 1. is it a part of GTA, ANY ABATEMENT...? 2. Who has to pay the Ser.Tax? will railway charge it in the invoice & claim cenvat credit? 3. are we the service receipient be liable to pay? if yes,can we claim cenvat credit? somewhere I had read about the cenvat to be claimed by Railways. pl. clarify.
Liability of service tax
ASHISH DESAI
Clarification on Service Tax for Rail Freight: Abatement, Payment Responsibility, and CENVAT Credit from September 1, 2009. A query was raised regarding the extension of service tax on rail freight effective from September 1, 2009. The inquirer sought clarification on whether this tax is part of the Goods Transport Agency (GTA) and if any abatement applies, who is responsible for paying the tax, and whether the service recipient can claim CENVAT credit. The response indicated a substitution in the relevant legal provisions and mentioned a previous 70% abatement for container transport by rail. It was suggested that the government might amend the exemption scope by the implementation date. (AI Summary)