Govt exempts service tax on transport of essential items

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Ankur Garg

Company Secretary and Compliance Officer

114788 Points Joined January 2009

Thursday 03 September, 2009.

Govt exempts service tax on transport of essential items

The government on Wednesday exempted transportation of essential goods like foodgrains, fertilisers and petro products from service tax, a move that could help in keeping prices of these items from rising further.

The exemptions are in effect from 1st September, the day from which service tax on transportation through rail and waterways, as announced by the Finance Minister Pranab Mukherjee in the Union Budget in July, was to take effect.

"It is necessary in the public interest so to do, (the government) exempts the taxable service provided to any person in relation to the transport of goods," the Central Board of Excise and Customs in two separate notifications for transport by rail and waterways said.

The list of exempted goods include edible oil seeds and edible oils; food grains (cereals and pulses) and flour,

petroleum and petroleum products and defence and military equipments.

Transport of parcels containing newspapers (registered with the Registrar of Newspapers) has also been exempted from the levy.

The transport services through rail and waterways were included in the ambit of service tax in the budget 2009-10.

The decision on exemption was taken after representations from various quarters, including the Agriculture and the Commerce ministries.

The exemption has also been extended to include raw jute and jute textile, seeds for food crops and fruits and vegetables, seeds for cattle feed, jute seeds, medicine/ pharmaceutical products, relief materials meant for victims of natural or other disasters.

Also luggage of travellers by train or ship, whether carried as personal luggage or booked separately in the luggage van, will be out of the service tax purview.

At present service tax is at 10 per cent following a 2 per cent rebate in the stimulus packages for the economy announced earlier.

Replies (4)

EKALABYA TALUKDAR

SERVICE TAX CONSULTANT

666 Points Joined August 2009

Originally posted by :Ankur Garg
"	Thursday 03 September, 2009. Govt exempts service tax on transport of essential items The government on Wednesday exempted transportation of essential goods like foodgrains, fertilisers and petro products from service tax, a move that could help in keeping prices of these items from rising further. The exemptions are in effect from 1st September, the day from which service tax on transportation through rail and waterways, as announced by the Finance Minister Pranab Mukherjee in the Union Budget in July, was to take effect. "It is necessary in the public interest so to do, (the government) exempts the taxable service provided to any person in relation to the transport of goods," the Central Board of Excise and Customs in two separate notifications for transport by rail and waterways said. The list of exempted goods include edible oil seeds and edible oils; food grains (cereals and pulses) and flour, petroleum and petroleum products and defence and military equipments. Transport of parcels containing newspapers (registered with the Registrar of Newspapers) has also been exempted from the levy. The transport services through rail and waterways were included in the ambit of service tax in the budget 2009-10. The decision on exemption was taken after representations from various quarters, including the Agriculture and the Commerce ministries. The exemption has also been extended to include raw jute and jute textile, seeds for food crops and fruits and vegetables, seeds for cattle feed, jute seeds, medicine/ pharmaceutical products, relief materials meant for victims of natural or other disasters. Also luggage of travellers by train or ship, whether carried as personal luggage or booked separately in the luggage van, will be out of the service tax purview. At present service tax is at 10 per cent following a 2 per cent rebate in the stimulus packages for the economy announced earlier.	"

IS IT EXEMPTED OR INTRODUCED JUDGE YOURSELF ?

RAILWAY WAS NOT IN THE SERVICE TAX NET

NOW GOVT HAS EXEMPTED SOME PRODUCTS FROM SERVICE TAX NET IN RAILWAY

Naveen

Service

22 Points Joined September 2008

Dear sir

Can u tell me service tax exempted or not on transportation of empty containers (storage & warehousing).

Thanks

Naveen

Arun Kumar Singh

GST Advocate

15220 Points Joined January 2009

Service Tax will be exempted on empty containers.

Suresh Kumar Chhaparia

FCA

21 Points Joined March 2008

Please guide me whether exemption of service tax on transportation of essential items through road may be available who provided services for Nepal for world food Programme,Nepal