Abatement Applicability on service tax on Goods transported by Rail

[PAWAN KUMAR SHARMA]

We are using the transportation by Rail mode and transporter is charging Full rate of service tax on the same.

AI Summary

Abatement for rail goods transport may apply, but vendor classification and cenvat credit affect service tax liability.
Applicability of abatement on service tax for goods transported by rail depends on whether the activity is covered by the rail transport abatement entry and whether the transporter avails cenvat credit or the goods are exempt; if a contractor supplies ancillary business support services instead of direct rail transport, no abatement applies and the full value is taxable.