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Levy of service tax on transportation of passengers by rail

Commercial Circular No. 32 of 2015 · 2015-06-01
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Circular numberCommercial Circular No. 32 of 2015
File numberNo. TCIl/2910/2012/Service
Date2015-06-01
TypeCommercial Circular
Topicfares
Official PDFindianrailways.gov.in

Summary

Levy of service tax on transportation of passengers by rail Cess’ and ‘Secondary & Higher Education Cess’ shall be subsumed _ in the new service tax

Text of the circular

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

KKK KK

C (Commercial Circular No. 32 of 2015)
No. TCIl/2910/2012/Service Tax New Delhi, 9¢.05.2015

The General Managers,
All Zonal Railways.

Sub: Levy of service tax on transportation of passengers by rail.

Ref.:- Board’s letters of even no. dated 26.06.2012, 26.09.2013(C.C. No.58 of
2012), 28.09.2012 (C.C. No.59 of 2012), 29.09.2012 (C.C.No.60 of 2012) &
10.10.2012 (C.C. No.62 of 2012).

In terms of Board's letter of even no. dated 26.06.2012 service tax of 3.708% is
levied on the total fare. As per General Budget 2015-16 announcement, the ‘Education
Cess’ and ‘Secondary & Higher Education Cess’ shall be subsumed _ in the new service tax
rate and service tax rate is proposed to be increased from 12% plus Education Cesses to
14%. Accordingly, it is proposed to modify para 3 of Board’s letter of even no. dated
26.06.2012 as under:-

“Service tax of 14% will be charged on 30% of passenger fare equivalent to 4.2% of the
total fare in first Class and AC Classes.

2. The increase in Service Tax will be applicable w.e.f. 01.06.2015 on the tickets
issued/bookings made on or after 01.06.2015. Service Tax increase is not leviable on
tickets issued prior to 01.06.2015.

3. Besides this, there is also a proposal to levy Swach Bharat Cess_ on all or certain
taxable services at a rate of 2% on the value of such taxable services. If Railways is also
included in the list for Swach Bharat cess, the same will be notified later.

4. Other terms and conditions will remain the same as per various
circulars/notifications issued on this subject. Necessary instructions may be issued to all
concerned.

5. This issues with the concurrence of Finance Directorate of Ministry of nf ays.

(Dr. S. K. Ahirwar)
Director Traffic Commercial (G)
Railway Board

No. TCII/2910/2012/Service Tax New Delhi, 2€ .05.2015

Copy to:-

1. DAI (Railways).

2. FA & CAOs, All Indian Railways.

3. Principal Director of Audit, All Indian Railways.

Qf

mie a)

for Financial Commissioner, Railways

No. TCII/2910/2012/Service Tax New Delhi, 2¢ .05.2015

_ Copy forwarded for information & necessary action to:

मी ७० 1० लो

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(C&lS), EDV(T), ED/Safety, ED(H), ADG/PR, DFC, DTC(G), DTC(G)-IIl, and
TC(CR), V(SS), PR, TG-I, TG-Il, TG-IV, TG-V & F(C) Branches, Railway Board.

MD, GM/PRS, GM/UTS Centre णि Railway Information System (CRIS),
Chanakyapuri, Near National Rail Museum, New Delhi, for making necessary changes
in the PRS and UTS softwares.

MD, IRCTC, 11" Floor, B-148, Statesman House, Barakhamba Road, New Delhi-1.
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, Kolkata.

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, New 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,
New Delhi.

The Secretary General, Federation of Railway Officers Association, Room No. 256-
A, Rail Bhavan, New Delhi.

The Secretary General, Indian Railway Promotee Officers कक , Room No.
268, Rail Bhavan, New Delhi.

(Dr. S. K. Ahirwar)
Director Traffic Commercial (G)
Railway Board

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