Railways exempted from service tax until Septmeber
The finance ministry has issued a notification exempting the Railways from 12 per cent service tax for three months till September 30, today.
Thus, passenger fares and freight charges will not increase immediately.
Railway Minister Mukul Roy had written to Prime Minister Manmohan Singh, requesting him not to introduce service tax on passenger fare and freight traffic from July 1.
Service tax on railway passenger travel and freight was introduced in the Budget for 2009-10 but was kept on hold due to the then Railway Minister Mamata Banerjee’s opposition.
The exemption has been extended since then on quarterly basis.
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Source: Financial Express
Finance ministry, freight charges, Mamata Banerjee, Manmohan Singh, Mukul Roy, passenger fares, railway passengers, Railways, Service Tax
