Service Tax on payment of rail transporation of Coal

[kamal chordia]

Sir

We are prouring coal and same is coming from rail transportation. Now please clear weather service tax is applicable on money receipt of railways, if yes, related notification-circular etc.

kamal

[JAMES PG]

Ministry of Railways has issued Circular No TCR/1078/2011/2 dated 28.09.12 wherein it has been directed to apply to CCM for getting formal Certificate of payment of Service Tax based on which Cenvat credit can be atken

[kamal chordia]

we  have study the circular of railway department dt 28.09.2012, wherein service tax is applicable but my questation is that on procuring of coal ihorugh rail, service tax is applicable or not, because i had received RR in which service tax amount collected is not mentioned seperately.

Therefore we  need clarification weather the service tax applicable or not, if applicable, then on the basis of RR are we entitle for taking service tax credit or any other docs required.

We shall be thankful for valuable information.

 

Thanks & regards

 

kamal

 

[vinay wakde]

Sir,

We are receiving Iron Ore CLO from Bacheli (M.P.) through Railway Rake. Presently we take colour Xerox  of RR and port railways stamped as Original received /submitted at destination and then the same is notarized. We take Service Tax credit on the strength of colour notarized RR copy. 

Regards,

VINAY

 

AI Summary

Service tax on rail transportation: determine entitlement to Cenvat credit and required documentary proof for claims. Issue whether rail transportation charges for coal attract service tax and whether recipients may claim Cenvat credit. A railway circular directs procurement of a formal Certificate of payment of service tax from the Chief Commercial Manager as the basis for taking Cenvat credit. Practical uncertainty exists when railway receipts do not separately identify service tax; market practice includes using a stamped, colour copy of the RR, notarised, to support credit claims, but the circular suggests a formal certificate is the proper documentary proof.