TaxTMI 
TaxTMI 
Transportation of parcel traffic (leased or non-leased parcel traffic) by Rail — Levy of Service Tax — Clarifications
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....bove, the following instructions are issued. 2. Service Tax will be levied for transportation of all description of parcel traffic (leased or non-leased parcel traffic) and merchandise items (for commercial use) booked as Luggage with effect from 1st October 2012. Luggage traffic i.e. personal baggage belonging to the travelling passengers, (excluding merchandise items for commercial use), shall be exempted from service tax. Commodities exempted from payment of service tax as per Ministry of Finance's Notification No. 25 of 2012 dated 20th June 2012 are (a) Relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; (b) Defence or military equipments; (c) Postal mail or mail bags; (d) ....
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.... preparation of Parcel Way Bill/Luggage Ticket/Money Receipt. 6. In case of undercharges or other charges, which are to be collected at the destination station, Service Tax at the stipulated percentage should be collected by the destination railway on such other components also. 7. To facilitate correct assessment, collection and payment of Service Tax, following instructions are issued : (i) FA&CAO of Zonal Railways will get themselves registered online at the earliest and, in any case within 30 days' time to get a Registration No. from the concerned Superintendent of Central Excise for proper accountal and remittance of Service Tax amount. (ii) In case of Parcel Way Bills/Luggage Tickets which are being manually prepared (....
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....r Registration Nos. by FA&CAOs of Zonal Railways. (vi) It may be ensured that not only railway customers but also all lease holders should pay Service Tax along with freight/lumpsum leased freight/haulage charge. Further, where advance payment facility has been permitted they would be required to pay Service Tax along with the freight/lumpsum leased freight/haulage charge. (vii) It may be ensured that proper arrangements are made for up-keep of records from the initial stage itself for subsequent auditing by Service Tax Authorities. As each location would be audited periodically, system of correct maintenance of records is a pre-requisite for its proper implementation. (viii) Instructions may be communicated to all the concerned staff....