In compliance of the provisions contained in Finance Bill 2012 and
subsequent notifications issued by Ministry of Finance, the Service Tax in case
of railway travel, which was exempted upto 30th September 2012, will
be levied on the fare of passenger services in the following classes from 1st October
2012.
(i) AC First Class, (ii) Executive Class, (iii) AC-2 tier Class, (iv)
AC-3 tier class, (v) AC Chair Car class, (vi) AC Economy class and (vii) First
Class.
Since an abatement of 70% has been
permitted on passenger services by Ministry of Finance, the Service Tax will be charged on 30% of
total fare including reservation charge, development charge, superfast
surcharge which would be calculated as follows:-
i)
Service Tax of 12% will be charged on 30% of fare (equivalent to 3.6% on
the total fare)
ii)
Education Cess of 2% on Service Tax will be added (equivalent to 0.072%
on total fare) and
iii)
Higher Education Cess of 1% on Service Tax will also be added (equivalent
to 0.036% on total fare)
iv)
Total Service Tax implication will be (i)+(ii)+(iii)=3.708% on the
total fare.
On Concessional value tickets/PTO
tickets etc. service charge will be levied on 30% of the total fare actually
being paid by the passengers.
The Service Tax will also apply to tickets issued in advance for journeys
to commence on or after date of implementation of Service tax. In the case of tickets already issued
excluding service tax, the service tax
on total fare including development charge, superfast surcharge, reservation
fee, etc. date of implementation of Service Tax will be recovered either
by TTEs in the train or by the Booking Offices before commencement of
the journey by the passengers.
Commercial Inspectors and TIAs have been instructed to visit all
important stations and ensure that service tax is levied on tickets issued as
per the revised rates. Commercial
Officers have also been asked to make surprise checks at the stations and
ensure that Service Charges are levied from date of implementation of Service
Tax.
The amount of Service Tax collected from passengers will be deposited
with the Ministry of Finance as per procedure.
Finance Departments of Zonal Railways have been instructed for proper
accountal and remittance of Service Tax amount to the Government.
In case of refund of passenger fare, if any, refund of Service Tax shall
be claimed by the passenger from the concerned Service Tax authority. No refund shall be made by the Railways on
this account. For the purpose of claiming
refund, Chief Commercial Manager (CCM) office of concerned Zonal Railway shall issue
a certificate to passenger detailing the amount of refunds to be signed by an
Officer authorized by CCM, which shall be countersigned by the Dy. Chief
Account Officer (DCAO) or officer authorized by them for this purpose.
Source : PIB, Sept 27, 2012
No comments:
Post a Comment