Rate and applicability of service tax on transportation of goods by rail

[Sarwan Agarwal]

Dear Sir, Whether Service Tax is payable on transportation of Goods by Railway in small loads. The goods are delivered on door to door basis. Plz also tell what is the rate of Serice tax, if applicable.

[Surender Gupta]

From the short facts it is not possible to determie the exact nature of services. Whether it is a Curier Service or C & F Agent Service or merely a service of Transport of goods in Container by Rail? Only a detailed study of facts would help to determine the nature of door to door service.

In my opinion Transport of goods in containers by Rail services is only liable to pay service tax, if goods or not transported in container,but transported without container by rail is not liable to pay service tax. The definition of said service is as follows: "If the goods are not contanerized, i.e, not put in container, and merely loaded in a wagon even if it is transport by person to whom the permission has been granted, no service tax will be payable on such services. The definition of taxable service specifically provides that the goods must be transported in a container.

AI Summary

Transport of goods in container by rail: service tax applies when carriage is containerized and door to door.
Liability for service tax depends on containerization: door-to-door rail transport of goods carried in containers is treated as a taxable service, whereas goods loaded loose in wagons without containers are not within that taxable description; factual classification (courier, C&F, or plain rail transport) must be established from contractual and operational details.