Service Tax - Transport of Goods by Rail - Indian Rail vs Indian Revenue - Exemption to expire on 31 December - Will Didi get an extension?
SINCE 2009, the Finance Ministry had been trying to levy Service Tax on transport of goods by Rail, but Madam Mamata Banerjee had been scuttling their efforts. We were told that a CBEC Member called on a Railway Board Member to work out the details of collecting the tax. The Railway Board Member told him, “we don't recognise this tax”. And he was right! His Minister got the tax put on hold. The exemption for this tax is to expire on 31 December 2010, which means that from 1 January 2011, the Railways will have to pay this tax.
But the Railways is in no mood to pay. It seems yesterday Didi Mamata met Dada Pranab and asked for extension of the exemption till 31 March 2011. The FM is known to be a very obliging person and he cannot certainly turn down the request of his illustrious colleague with whom his party has to face an election in his home state soon.
The exemption is bound to be extended, but let us hope our babus do it before it lapses on 31 st December.
Please also see
1. – 21.08.2009
2. – 01.09.2009
3. – 02.09.2009
4. – 14.06.2010