9911796707
TMI BlogLevy of Service Tax on Transportation of Goods by Rail from 1st October 2012X X X X Extracts X X X X X X X X Extracts X X X X ..... Levy of Service Tax on Transportation of Goods by Rail from 1st October 2012 - News and Press Release Dated:- 28-9-2012 - News - Press Information Bureau Government of India Ministry of Railways 27-September-2012 18:16 IST In compliance of the provisions contained in Finance Bill 2010 and subsequent notifications issued by Ministry of Finance, the Service Tax in case of transpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtation of goods by rail, which was exempted upto 30th September 2012, would now be levied on total freight charges with effect from 1st October 2012. Since an abatement of 70% has been permitted on freight for the taxable commodities by the Ministry of Finance, the Service Tax will be charged on 30% of the total chargeable freight inclusive of all charges (like busy season charges, development ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charge etc.,) would be calculated as follows:- i) Service Tax of 12% will be charged on 30% of freight (equivalent to 3.6% on the total freight charges) ii) Education Cess of 2% on Service Tax will be added (equivalent to 0.072% on total freight) and iii) Higher Education Cess of 1% on Service Tax will also be added (equivalent to 0.036% on total freight) iv) Total Service Tax implication ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... will be (i)+(ii)+(iii)=3.708% on the total freight charges. Certain commodities have been exempted from payment of service tax as per Ministry of Finance notification. The list of such commodities and further details on the modalities of levy and collection of Service Tax on transportation of goods by rail, may be ascertained from Indian Railways web site i.e. www.indianrailways.gov.in The am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount of Service Tax collected by Railways would be deposited with the Ministry of Finance as per prescribed procedure. AKS/HK/LK - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
