Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: cpt :: VAT RATES :: empanelment :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: TDS :: form 3cd :: ACCOUNTING STANDARDS
« Service Tax »
 Do you know which 80C instruments can help you save tax and carry no future tax liability?
 E-way relief, for now, to e-commerce, courier firms sending small orders
 Where to invest for saving more on taxes
 A simpler GST can become a registry of all invoices, says iSPIRT’s Sharad Sharma
  Income Tax department may defend CPC in returns fraud case
 One GST rate not possible, next reform after compliance improves,
  Communication to the Central Excise/Service Tax Taxpayers on migration to GST
  GST Network simplifies returns filing process
 Why is the successful roll-out of the e-way bill necessary?
 How service tax became revenue lifeline for the Govt
 Three simple tricks to save income tax without investing fresh funds

Railways, 18 companies face probe for service tax evasion
February, 18th 2015

The Indian Railways, Container Corporation of India (Concor), a navratna PSU, and 17 private companies, including the Adani group, are facing investigations for evasion of service tax to the tune of Rs 1,000 crore.

Indian Railways and Concor along with a private company have even been slapped with a show-cause notice of Rs 700 crore by director general of central excise intelligence (DGCEI).

According to sources, the companies (also called Private Container Train Operators or PCTOs) in connivance with the Indian Railways allegedly evaded paying service tax by taking advantage of the relaxation given by the government for goods transported by train.

To ease pressure on its infrastructure, Indian Railways in 2006 allowed private companies to run their container rakes using railways' tracks, engines and crew. While the private companies earned freight charges through their customers, they paid "haulage charges" to railways. Till 2012, government had given "transportation of goods by rail" 100% exemption from service tax.

However, in October 2012, the government brought it under service tax with a relaxation of 70%, i.e. only 30% of the service tax due on the train transport had to be paid. So while railways paid the 30% tax on goods it transported on its own, it transferred the same benefit to private players for use of its services (i.e. track, engine etc).

DGCEI has argued that while "transport of goods by rail" enjoys exemption, the payment for services provided by railways to private players must be fully taxed. "In this case, certain railway officials connived with the private players to help them evade tax. Any service tax to be paid for goods transported by private players had to be done by them. But in this case it's the railways which collected the service tax and that too only 30% of the due amount to unduly help the private parties," said a DGCEI official.

In all 17 PCTOs are being investigated for evasion of service tax which include Adani Logistics Ltd, Gateway Railfreight Limited, Hind Terminals Ltd, India Infrastructure and Logistics Ltd among others, he said.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Enterprise Resource Planning Solutions ERP Solutions Enterprise Resource Planning Software Solutions ERP Software Solutions Supply Chain Management Solutions SCM Solutions Supply Chain Management Software Solutions SCM Software Solutions Enterprise Resource Planning Solutions India ERP Solutions India Enterprise Resource Planning Software Solutions India ERP Software Solutions India Supply Chain Management Solutions India SCM Solutions India Supply Chain Management Software Solutions India SCM Software Solutions India

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions