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Levy of Krishi Kalyan Cess on Transportation of Goods by Rail

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Levy of Krishi Kalyan Cess on Transportation of Goods by Rail 131 Add Krishi Kalyan Cess @0.15% on Total Freight | 3249.73

Text of the circular

Corrigendum No. 6 to Rates Circular No. 29 of 2012 GOVERNMENT OF INDIA (भारत सरकार) MINISTRY OF RAILWAYS (रेल मंत्रालय) (RAILWAY BOARD) (रेलवे बोर्ड)

No. TCR/1078/2015/15 New Delhi, dated:31.05.2016

General Managers All Indian Railways.

Sub: Levy of Krishi Kalyan Cess on Transportation of Goods by Rail.

Ref: (A) Board’s Rates Circular/Corrigendum/Letters listed below:

(i) Rates Circular No. 29 of 2012 and its Corrigendum dated 28.03.2013;

dated 31.03.2015; dated 27.05.2015; dated 03.06.2015 & 12.11.2015.

(ii) Letter No. TCR/1078/2011/2 dated 05.10.2012 and 08.10.2012

(iii) Rates Circular No. 27 of 2014:

(iv) Letter No. TCR/1078/2012/24 dated 23.04.2013; and

(v) Letter No. TC-I/2012/214/2 dated 14.11.2014

(B) Ministry of Finance’s Notifications listed below:

(i) Finance Act, 2016; and Ministry of Finance, Notification No. 27- 31/2016-Service Tax dated 26.05.2016.

Ministry of Finance vide above referred Notification dated 26.05.2016 has decided that in exercise of powers conferred by Sub —Section (2) of Section 68 of the Finance Act, 1994 (32 of 1994) read with Sub-Section (5) of Section 161 of Finance Act, 2016 (28 of 2016), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby provides that Notification No. 30/2012-Service Tax, dated the 20" June, 2012, published in the Gazette of India, Extraordinary, Pt.

Il, Section 3, Sub-Section (i) vide No. GSR 472 (E), dated 20" June 2012 shall be applicable mutatis mutandis for the purpose of Krishi Kalyan Cess. This notification shall come into force from 1* day of June, 2016.

Krishi Kalyan Cess @ 0.5% is to be levied on the value of all taxable SErvICes.

In view of the above, the rate of Service Tax on transportation of Goods by Rail shall be as “Service Tax @ 14%; Swacch Bharat Cess @ 0.5%; and Krishi Kalyan Cess @ 0.5% of total value of taxable services’.

Service Tax @ 14%; Swachh Bharat Cess @ 0.5%: and Krishi Kalyan Cess @ 0.5% are chargeable on 30% of total freight. The total Service Tax implication, therefore, will be 4.5% of the total freight.

IIlustrations for working out the Service Tax (including Swachh Bharat Cess and Krishi Kalyan Cess) are attached as Illustrations- A, B & C.

CRIS/FOIS may make necessary changes in the software to capture the different elements of Service Tax separately.

Corrigendum No. 6 to Rates Circular No. 29 of 2012 These instructions shall come into force with effect from 01.06.2016.

All other details contained in above’ referred Board’s’ Rates Circulars/Corrigendum/letters shall continue to apply unchanged.

This issues with the concurrence of Finance Directorate of Ministry of

Railways.

ks नाल

(Mahender Singh) Deputy Director, Traffic Commercial (Rates) (Railway Board)

No. TCR/1078/2015/15 New Delhi, dated: 31.05.2016 Copy for information and necessary action to:-

FA & CAQs, All Indian Railways Dy.C&AG (Rlys.), Room No.222, Rail Bhavan, New Delhi.

(५.

inancial Commissignd लए) for Financial Commissioner (Railways)

No. TCR/1078/2015/15 New Delhi, dated:31.05.2016 Copy to:-

1. CCMs, All Indian Railways.

2. COMs, All Indian Railways.

3. Managing Director, CRIS, Chanakya Puri, New Delhi-23

4. The Chief Administrative Officer, FOIS, Northern Railway, Camp: CRIS,

Chanakya Puri, New Delhi-23.

5. Managing Director, Konkan Railway Corporation, Belapur Bhavan, Sector- 11, CBD Belapur, New Mumbai-400614.

Director General, National Academy of Indian Railways, Vadodara.

Director, Indian Railways Institute of Transport Management, Campus:

Hardoi Bye Pass Road, Village & Post office: Kanausi, Manaknagar, Lucknow.

8. GS/IRCA, New Delhi.

9. Secretary, Railway Rates Tribunal, 5, P.V. Cherian Road, Crecent Road,

Egmore, Chennai- 600105 Ot

(Mahender Singh) Deputy Director, Traffic Commercial (Rates) (Railway Board)

NO

C

Copy to:

OSD/PSO to MT and FC for the kind information to MT & FC

PPS to: AM(C), AM(T), AM (Vig),

EDTT(F), EDF(C), EDFX(I),

DF(C), DFM

TC(CR),TC-I, TC(FM),

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