IRS v IRS- Indian Railway Service v Indian Revenue Service - Transport of Goods by Rail - Yet another 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 was to expire on 31 December 2010, which means that from 1 January 2011, the Railways were to pay this tax.
But the Railways were in no mood to pay. DidiMamata met Dada Pranab and got an 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 had to face an election in his home state soon. And so it was extended till 31 st March 2011, which is unfortunately staring at our face tomorrow. If this is not further extended, goods transport by rail would be taxable from 1 st April 2011. But the FM cannot afford to displease Didi with elections just a few weeks away. So it is bound to be extended. The moot question is “will they do it tomorrow?”
Please see
1. – 21.08.2009
2. – 01.09.2009
3. – 02.09.2009
4. – 14.06.2010
5. – 22.12.2010