No need of photocopies of RRs to avail CENVAT credit but…
SERVICE Tax on 'Service provided in relation to transport of goods by rail' came into effect from 01.10.2012.
For the purpose of availment of CENVAT credit by the customer, the CCR, 2004 did not prescribe any document at the material time.
Thankfully, the Railways were prepared before the levy came into force.
The Railways issue, what they call, Railway Receipts (RRs) for the goods booked with them. But, is this RR a valid document?
The Railway Board in a Circular issued on 28.09.2012 directed that:
On any written request from customers, CCM Office will issue a monthly consolidated certificate to be signed by an Officer authorized by CCM and duly countersigned by Dy CAO/T or officer nominated thereto, for each customer giving details of Service Tax collected from them during the previous month, date-wise and rake-wise with breakup of (a) Service Tax, (b) Education Cess, (c) Higher Education Cess, and (d) Total Service Tax. This can be used by the customers for getting credit of Service Tax.
The CBEC thought about this almost two years later.
By notification dated August 27, 2014, a clause "fa" was inserted in Rule 9(1) of the CCR, 2004 and which read:
"(fa) a Service Tax Certificate for Transportation of goods by Rail (herein after referred to as STTG Certificate) issued by the Indian Railways, along with the photocopies of the railway receipts mentioned in the STTG certificate; or"
For more, see .
Now, the Board thinks that seeking photocopies of the railway receipts (RRs) mentioned in the STTG certificate is cumbersome and wastage of paper… and it is better to do some more paperwork …perhaps.
So, the clause (fa) is now substituted and the requirement of enclosing RRs along with the STTG certificate is done away with.
The substituted clause now reads -
"(fa) a Service Tax Certificate for Transportation of goods by rail issued by the Indian Railways; or"
But this does not mean that RRs are nowhere in the picture. They certainly are!
The meticulous Board has laid down an exhaustive procedure for availing CENVAT credit of service tax paid on transportation of goods by rail and this envisages two Annexures - Annexure "A" (STTG Certificate) & Annexure "B" to be issued by, hold your breath - the Railways.
Annexure "B" contains the details of RR(s) in a tabular form - 12 columns (Board is fascinated with tables) which inter alia includes RR number, date, name of consignee, freight, service tax/cess paid etc. and which is to be certified by competent Railways authority.
Will the Railways be happy to do this tabulation is what needs to be seen - as if they do not have their hands or bogies already full!
And if this Annexure "B" is not issued, will the credit be denied?
But should this Circular not be addressed to the Railway Board, courteously speaking.
Maybe before GST comes, Board wants to make life so miserable that people will love GST and feel it to be far better than all these complicated procedural rigmarole.
Notification dated September 20 2016
Circular dated September 20 2016