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 and SUN]

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 and SUN]

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

Service tax exemption on rail freight extended to non-railway operator CONCOR, yet CONCOR continues charging tax. Notification exempting rail freight from service tax temporarily relieved carriage of goods by rail from service tax, and that exemption was understood to extend to rail transport services provided by Container Corporation of India Ltd (CONCOR); notwithstanding, CONCOR continued to charge service tax on freight after applying abatement, creating a compliance and billing dispute.