TaxTMI 
TaxTMI 
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
Service Tax on payment of rail transporation of Coal
29 Dec 2012 
3 Replies 
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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. (AI Summary)
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. (AI Summary)