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Levy of Krishi Kalyan Cess on the service tax leviable on transportation of passengers by rail

Commercial Circular No. 29 of 2016 · 2016-05-31
Historical — likely supersededCircularfares
Historical — likely superseded. This circular predates 2020 and has probably been replaced. Treat it as a record of what the rule was, not what it is. The official Railway Board PDF always prevails over anything shown here.

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Circular numberCommercial Circular No. 29 of 2016
File numberNo. TC-H/2910/2012/Service
Date2016-05-31
TypeCommercial Circular
Topicfares
CurrencyHistorical — likely superseded
Official PDFindianrailways.gov.in

Summary

Levy of Krishi Kalyan Cess on the service tax leviable on transportation of passengers by rail The General Secretary,All India Railwaymen’s Federation, Room No.253,Rail Bhavan, N.Delhi

Text of the circular

(भारत सरकार) GOVERNMENT OF INDIA)
(रेल मंत्रालयं) MINISTRY OF RAILWAYS)
(रेलवे बोर्ड RAILWAY BOARD)

नरक के के 1 के

(Commercial Circular No. 2.4 of 2016)

No. TC-H/2910/2012/Service Tax New Delhi, dated 31.05.2016

The General Managers,
All Zonal Railways.

SUB: Levy of Krishi Kalyan Cess on the service tax leviable on transportation of
passengers by rail.

REF: i. Commercial Circulars No.32 of 2015 dated 26.05.2015 & 68 of 2015 dated 13.11.2015
ii. Ministry of Finance Notification No. 29/2016- Service Tax dated 26.05.2016.

Ministry of Finance vide their Notification No. 29/2016- Service Tax dated 26.05.2016 have
decided vide i: their Notification No. 39/2012- Service Tax, dated the 20" June, 2012, published in
the Gazette of India, Extraordinary, vide number G.S.R. 481E, dated, 20" June, 2012 in Explanation 1,
after clause (d), the following clause shall be inserted, namely:- “(e) Krishi Kalyan Cess as levied
under sub-section (2) of section 161 of the Finance Act, 2016 (28 of 2016).” Krishi Kalyan Cess @
0.5% shall be levied on the value of all taxable services w.e.f. 01-06-2016.

2. Accordingly, following changes shall be made in the Commercial Circular No. 68 of 2015 dated
13-11-2015:-

“Service tax of 14%, Swachh Bharat Cess of 0.5 % and Krishi Kalyan Cess of 0.5% are
chargeable on 30% of total passenger fare equivalent to 4.50% of the total fare in first class and

all AC classes.”

3. The increase in service tax shall be applicable w.e.f, 01-06-2016 on the tickets issued/booking
made on or after 01-06-2016. Service Tax increase is not leviable on tickets issued prior to 01-
06-2016.

4, CRIS may make necessary changes in the software to reflect the different elements of Service

Tax correctly and separately.

5. Other terms and conditions shall remain the same as per various circulars/notifications issued on
this subject. a

6. This issues with the concurrence of Finance Directorate of Mini stry of Railways,

7. Necessary instructions shall be issued to the all concerned,

Vor
(Vikram an

Director Passenger Marketing
Railway Board

No. TC-II/2910/2012/Service Tax New Delhi, dated 31.05.2016
Copy forwarded for information to: .

1. The Dy. Comptroller & Auditor General of India (Railways), Room No.224, Rail Bhavan, New Delhi.
2. The FA&CAOs, All Indian Railways.
3. The Principal Director of Audit, all Indian Railways. @ 9

ws} 4

tte at ony ee eS
for Financial Commissioner/R4ilway,

2}.

PC-3 P- Service Tax

No.TC-II/29 10/2012/Service Tax New Delhi, dated 31 .05.2016
‘a ः व

Copy forwarded for information & necessary action to:

Rep

ND

10.
11.

12.
13.

14,
15.

16.

CCMs, All Indian Railways.
CCM (PM)s, All Indian Railways.
CRB, MT, FC, Secretary, DG/RHS, Railway Board.
AM(B), Adv (Finance), AM(IT), AM(C), Adv (Vig), Adv(Rates), ED(A), EDF(C), ED(X)-I,
ED(C&IS),EDV(T), ED/Safety, ED(H), ADG/PR, DFC, DTC(G), JDA and TC(CR), V(SS), PR,
TG-I, TG-II, TG-IV, TG-V & F(C) Branches, Railway Board.
MD; GM/PRS, GM/UTSCentre for Railway Information System (CRIS), Chanakyapuri, Near
National Rail Museum, New Delhi, for making necessary changes in the PRS and UTS softwares.
MD, IRCTC, 9" Floor, Bank of Baroda Building, 16, Sansad Marg, N.Delhi.
Director General, Railway Staff College, Vadodara.
Managing Director, Konkan Railway Corporation Ltd., Belapur Bhavan, Plot No. 6, Sector 11,
CBD Belapur, Navi Mumbai — 400 014. ‘
General Manager, Metro Railway, 33/1, J.L. Nehru Road, Kollata.
Chief Commissioner of Railway Safety, Lucknow
General Secretary, IRCA, Chelmsford Road, New Delhi for issue of necessary correction slip to
Coaching Tariff No. 26 part-I (४०.1)
The General Secretary,All India Railwaymen’s Federation, Room No.253,Rail Bhavan, N.Delhi
The General Secretary, National Federation of Indian Railwaymen, Room No. 256-E, Rail Bhavan,
New Delhi.
The Secretary General, All India R.P.F. Association, Room No. 256-D, Rail Bhavan, N.Delhi
The Secretary General, Federation of Railway Officers Association, Room No. 256-A, Rail
Bhav

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