Transport of goods by Rail - Taxable Services - As appliable on or before 30-6-2012 - Service Tax

Transport of goods by Rail (w.e.f. 1-5-2006 - Transport of goods in Container by Rail) (w.e.f. 1-9-2009 Transport of goods by Rail) What is taxable - 65(105)(zzzp) Any service provided or to be provided to any person, by any other person, in relation to transport of goods by rail, in any manner Meaning of Government Railway under section 2(20) of Railway Act, 1989 " Government railway " means a railway owned by the central Government; Who is the receiver of service Any person Who is the provider of service Non Government Railway Who is liable to pay service tax Non Government Railway Comments: A. As per Paragraph No 6. of Circular No. 96/7/2007 dated 23/8/2007 states that :- "6. This circular supersedes all circulars, clarifications and communications, other than Orders issued under section 37B of the Central Excise Act, 1944 (as made applicable to service tax by section 83 of the Finance Act, 1994), issued from time to time by the CBEC, DG (Service Tax) and various field formations on all technical issues including the scope and classification of taxable services, valuation of taxable services, export of services, services received from outside India, scope of exemptions and all other matters on levy of service tax. With the issue of this circular, all earlier clarifications issued on technical issues relating to service tax stand withdrawn." B. Extracts from Circular No. D.O. F. No.334/13/2009-TRU dated 6-7-2009 Transport of Goods through Rail: Presently, transportation of goods in containers by rail, by other than Government railways is taxable under section 65(105)(zzzp) since 2006. It is now proposed to impose service tax on goods transported by railways including Government railways, whether in containers or otherwise. Suitable abatement and exemption to specified goods would be provided through issuance of notification at the appropriate time.