Levy of Service Tax on Transportation of Goods by Rail

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....d-28.09.2012 circulated under RC No.29 of 2012 which is enclosed herewith. You are, therefore, requested initiate necessary step to implement the directives issued by the Railway Board in the Rates Circular No.29 of 2012 dated-28.09.2012 effective from 01.10.2012.(Repeat lst October,2012) This may please be treated as most urgent. DA- as above. for Chief Commercial Manager/ FM (Authority: No. TCR/1078/2011/2 Dated-28.09.2012, RC No.29 of 2012) Rate Circular No. 29 of 2012 GOVERNMENT OF INDIA (BHARAT SARKAR) MINISTRY OF RAILWAYS (RAIL MANTRALAYA) (RAILWAY BOARD) No- TCR/1078/2011/2 New Delhi, 28.09.2012 The General Managers, All Indian Railways, Sub : Levy of Service Tax on Transportation of Goods by Rail Ref : Ministry of Finance Gazette Notification No I of 2006 dated I* March 2006 followed by Gazette Notification No. * 20 of 2006 dated 25th April 2006; * 28 & 29 of 2009 dated 31st August 2009 * 33 & 34 of 2009 dated 1st September 2009: * 8 & 9 of 2010 dated 27th February 2010 * 20,21 & 22 of 2010 dated 30th March 2010; * 33,34 & 35 of 2010 dated 22nd June 2010; * 56 of 2010 dated 21st December 2010 * 20 of 2011 dated 30th March 2011; and * 3....

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....otal Freight = (3+6+7) 933.08 9 Total Freight per rake =(8*42*66) 2586497.76 10 Freight per tonne after concessions = (5+6+7) 770.59 11 Freight per rake after concessions= (10*42*66) 2136076.00 12 30% taxable freight of the total value 640823.00 13 Add Service Tax @12% on 30% Freight (12*12%) 76899.00 14 Add Education Cess 2% of Service Tax (13*2%) 1538.00 15 Add Higher Education Cess @ 1 % of Service Tax (13 * 1%) 769.00 16 Rounded off Service Tax 79206.00 17 Total Rounded off Freight to be collected from one rake = (11+16) 2215282.00 Note:- $ Wherever applicable. Note:- Service tax shall be rounded off to the nearest rupee as per circular No.ST-53/2/2003 dated 27.3.2003. lllustration-B: (In Rs.) Distance Kms 650 Wagon BCNA CC of Wagon Tonne 66 Rake Length 42 Commodity Cement Class T/L 150 1 Freight per tonne Rs. 738.60 2 Freight rebate under WIS- @10% on Basic Freight=(1*10%) Rs. 73.86 3 Busy season surcharge @ 10% on Base freight = (1*10%) Rs 73.86 4 Normal Tariff Rate (NTR) = (1+3) Rs. 812.46 5 Normal Tariff Rate (NTR) per Rake=(4*42*66) Rs. 2252139.12 6 Development Charge @5% = (4*5%) Rs. 40.62 7 $Term....

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....Service Tax provider i.e. FA&CAO of zonal railway. •Amount of Service Tax. •Type of Service. •Code No. of Service. •Exemption Notification No. l of 2006 ST dt. 1.3.2006 is being availed. vi) Till allotment of Registration No., Zonal railways will be required to mention ^Applied For* against the space provided for Registration No., TMS software will also print 'Applied For' in the Computerised RRs till such time as CAO/FOIS is intimated about their Registration Nos„ by FA&CAOs of Zonal Railways. vii) In case any undercharges or other chargcs arc collected at the destination station, then service tax at the stipulated percentage should be collected by the destination railway on such other components also. viii) Service tax as applicable shall be collected along with the Wagon Registration Fee (WRF) and, separately at the stage of booking the consignment through RR on the respective amounts. In case of any refund of either the WRF or freight chargcs, the corresponding Service Tax shall also be refunded. ix) As per Rule 6 of the Service Tax (Determination of Value) Rules 2006, "the amount realized as demurrage or by any other name whatever called for t....

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....the total freight as reflected in RR. 6. Please ensure that various documents such as Service Tax notification etc. are obtained and all concerned made well conversant with the same. Provisions pertaining to Service Tax are available in Finance Act, 1994 and Service Tax Rules, 1994 as amended subsequently from time to time. Some of the relevant notifications are Notification No. 1 of 2006 - Service Tax dated 01.03.2006, Notification No. 25 of 2012 - Service lax and Notification No. 26 of 2012 - Service Tax dated 20.06.2012 issued in this regard, can be downloaded from the official website www.servicetax.gov,in, 7. Instructions regarding Registration No., head of allocation, accounting procedure, system of making payment etc.. have already been issued by the Accounts Directorate vide Rly. Board letter No.2010/AC 11/1/3 dated 29.06.2012. 8. Any modification in the policy made by Ministry of Finance from time to time will become applicable ancUvill be notified accordingly. 9.These instructions will come into force w.e.f. 01.10.2012. This issues in consultation with Finance Directorate of Ministry of Railways. D.A / As above. (Sattjay Kumar Jha) Dy. Director, Traffic Commercia....