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
Latest Expert Exchange
« Service Tax »
 What is a Tax Deduction Number?
 Give income tax return relief, revise slabs, hike max rate to Rs 20 lakh, says Ficci
 Income Tax saving saving investment schemes for senior citizens
  Here’s all you need to know Health insurance tax benefit
 Central Goods and Services Tax (Amendment) Act, 2018- Clarification regarding section 140(1) of the CGST Act, 2017
 Relief for companies facing tax outgo over valuation premiums
 Here's how it'll impact your savings Personal taxes that changed in 2018
 Here are your new income tax brackets for 2019
 Know the income tax rules first Investing in your spouse’s FD account to save tax?
  How much tax do you pay on your bond investments?
 Govt tells startups it will take the devil out of angel tax

Finance Ministry frees service tax
September, 03rd 2009

The Indian Railways has escaped from the service tax net thrown around it by the Finance Minister, Mr Pranab Mukherjee, in Budget 2009-10.

The Finance Ministry on Tuesday exempted transport of goods by Government Railway from service tax. The Finance Ministrys latest move to exempt Indian Railways from service tax came at the behest of the Railway Ministry, it is reliably learnt.

This exemption is a U turn by the Finance Ministry, which had on August 31 gone ahead with the implementation of the 2009-10 Budget announcement.

In fact, the Centre had on August 31 exempted certain essential items transported by rail from service tax, as part of the effort to cushion the impact of this levy on the common man.

The Revenue Department had also announced an abatement rate of 70 per cent for the purpose of levy of service tax on goods transported by rail.

This has now been reversed, with abatement of 70 per cent now available only for transport of goods in containers by rail.

From 2008, transport of goods in containers by rail was under service tax net. While Concor and other container rail companies will continue to pay service tax and be under the tax net, Indian Railways (as a Government department) has now been specifically exempt, a Finance Ministry official said.

In Budget 2009-10, the Government had said that transport of goods by rail will attract service tax, extending the coverage of this tax to Indian Railways (Government Railway). This was done to provide a level playing field in the goods transport sector.

The Finance Minister had noted in his Budget speech that, in the goods transport sector, service tax was levied on transport of goods by road, by air, through pipelines and in containers.

However, goods carried by Indian Railways or those carried as coastal cargo or through inland waterways were not charged service tax.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - About Us

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