Applicability of Service Tax on Railway transport by CONCOR

[Apurba Biswas]

Notofication 43/2012 dated 2nd July 2012 exempted Railways from applicability of service tax.

We are transporting goods from Railway service of Container Corporation of India Ltd,a Government Enterprise (CONCOR) and CONCOR is charging service tax as service provider on railway freight charges.

As per new notification, all freight of railways should be exempted from service tax. Please clarify.

[YAGAY andSUN]

This exemption Notification will be in force up-to 30-09-2012.  The Department may review the position after 30-09-2012 whether to levy service tax or not on Rail Freight.

[Apurba Biswas]

This is OK.

My main point is that this exemption is given for Indian Railways.

Whether it covers Rail services provided by Container Corporation of India Ltd.

Regards

S K Khetan

[Apurba Biswas]

This is OK.

My main point is that this exemption is given for Indian Railways.

Whether it covers Rail services provided by Container Corporation of India Ltd.

Regards

S K Khetan

[YAGAY andSUN]

Yes sir, it will be extended to CONCOR.

[Apurba Biswas]

CONCOR is not agreeing for exemption of service tax on Transport of Goods by Railways and charging Service Tax after abatement of 70% as service provider.  Please suggest for further action with Concor.

Regards

S K Khetan

AI Summary

Discussion on Service Tax Exemption for Railway Freight by CONCOR Until 30th September 2012 Sparks Debate on Abatement. A forum discussion addresses the applicability of service tax on railway transport services provided by the Container Corporation of India Ltd (CONCOR). A notification dated 2nd July 2012 exempts Indian Railways from service tax on freight, valid until 30th September 2012. A participant questions if this exemption includes services by CONCOR, a government enterprise. A respondent confirms the exemption applies to CONCOR, but the original poster notes CONCOR continues to charge service tax after a 70% abatement. The discussion seeks clarity on further actions regarding CONCOR's stance.