Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: form 3cd :: ACCOUNTING STANDARDS :: TDS :: empanelment :: Central Excise rule to resale the machines to a new company :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: VAT RATES :: VAT Audit
 
 
« Service Tax »
 CBEC to be renamed, reorganised for GST regime
  GST debate now continues on categorisation of products
 GST coming soon, but don’t expect quick benefits; rich valuation to stall stocks
 FM Arun Jaitley underlines urgency to pass GST bills in this Parliament session
 Government may table 4 GST bills in Parliament today
 Applicability Of Gst Law On Educational Institutions
 Cabinet clears 4 Bills, GST likely to roll out by July 1
 GST may also impact income tax collections: Experts
 Companies, consultants grope in the dark to meet GST deadline
 Cabinet approves GST, e-commerce cos to pay up to 1% tax
 Cabinet approves supporting GST legislations ahead of 1 July roll-out

All eyes on PM as service tax on rail freight comes into force from July 1
June, 28th 2012

Come July 1, rail freight users will have to fork out service tax on transport of goods by rail.

The existing service tax exemption, which is due to expire on June 30, will not be extended beyond the end of this month. This is because the Finance Ministry has gone ahead and notified a 70 per cent abatement on transport of goods by rail from July 1 when a negative list regime for services taxation will come into force.

Simply put, freight users will have to pay 3.6 per cent service tax on the total bill if the Railways decides to pass this tax on to the customer. The hike would impact the price of electricity, steel, cement, and real estate, say economy watchers.

All eyes are on Dr Manmohan Singh to see whether he spares the common man from this levy, which many contend would fuel another round of inflation.

A decision on the negative list postponement will be one of the first key decisions that Dr Singh may have to take as Finance Minister.

The erstwhile Finance Minister, Mr Pranab Mukherjee, had in 2009 announced the introduction of service tax on rail freight, but had since then deferred its implementation seven times.

Many industry representatives hope that the levy is not implemented, now that the Prime Minister, Dr Manmohan Singh, is holding additional charge of Finance.

Some of industry chambers have also written to the Finance Minister that the negative list regime should be postponed by three months.

The Railways moves bulk commodities such as coal, iron ore and other inputs for the steel and cement industries. An effective service tax of 3.6 per cent will be levied, when the new service tax regime with negative list comes into effect.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - We Bring IT. Offshore software outsourcing company. We use Global Delivery Model (GDM) and believe in Follow The Sun principle

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