Liability of service tax, Service Tax

[HARSHA JOSHI]

Fin. Minister has extended levy of SERVICE TAX ON RAIL FREIGHT w.e.f. 01-09-2009. my query is 1. is it a part of GTA, ANY ABATEMENT...? 2. Who has to pay the Ser.Tax? will railway charge it in the invoice & claim cenvat credit? 3. are we the service receipient be liable to pay? if yes,can we claim cenvat credit? somewhere I had read about the cenvat to be claimed by Railways. pl. clarify.

Posts / Replies

[Rama Krishana]

There is substitution of sub-clause (zzzp) of clause (105) of section 65. There was abatement of 70% for the Transport of goods in containers by rail under notification no. 1/2006. Since the new levy would be effective from 1-9=2009, government may amend the scope of exemption by that time positively in line with the amendment.