TRANSPORT OF GOODS BY RAIL: NO SERVICE TAX

In the Finance Budget 200p,FM has introduced new services in the service tax net ,One of
these services is " transport of goods b ra!". Further Govt has issued ist of exe!pted goods on which
service tax on " transport of goods b ra!"" is not appica"e and a "an#et $0 % a"ate!ent is aso aowed
on gross Freight charges .But after raiwa& !inistr& interference now Govt has ta#en a ' turn on this issue
and Fu& exe!pted this service fro! service tax (et, Means service tax wi not "e appica"e on the
" transport of goods b ra!". )his circuar shows that how co*ordination is "etween two Ministries or
"etween two parties of '+,. ,n& how its a "eneficia for co!!on !an as the service tax awa&s "orn "&
enduser.-o!pete notification is given "eow
.)O B/ +'B0I12/3 I( )2/ G,44/)/ OF I(3I,, /5)6,O63I(,67, +,6) II,
1/-)IO( 8, 1'B*1/-)IO( 9i:;
Govern!ent of India
Ministr& of Finance
93epart!ent of 6evenue:
(ew 3ehi, the <st 1epte!"er, 200=
(otification (o. 88>200= * 1ervice )ax
G.1.6. 9/:.* In exercise of the powers conferred "& su"*section 9<: of section =8 of the Finance ,ct, <==?
982 of <==?:, 9hereinafter referred to as the Finance ,ct:, the -entra Govern!ent, on "eing satisfied that it
is necessar& in the pu"ic interest so to do, #$r$b $%$&pts t#$ ta%ab"$ s$r'!($ pro'!d$d to an p$rson
!n r$"at!on to transport of goods b ra!") as r$f$rr$d to !n s*b+("a*s$ ,---p. of ("a*s$ ,/01. of s$(t!on
21 of t#$ F!nan($ A(t) fro& t#$ 3#o"$ of t#$ s$r'!($ ta% "$'!ab"$ t#$r$on *nd$r s$(t!on 22 of t#$
F!nan($A(t)
provided, nothing contained in this notification sha app& to an& service provided or to "e provided, "& an&
person other than govern!ent raiwa&, in reation to transport of goods in containers "& rai.
F. (o. 8@A>2?>200=*)6'
+rashant Bu!ar
'nder 1ecretar& to the Govern!ent of India