No.TC-II/2910/2012/Service Tax
The General Managers,
E All Zonal Railways.
SUB: Levy of Swachh Bharat Cess on the service tax leviable- on transportation passengers by rail.
REF: i. Commercial Circular No.32 of 2015 dated 26.05 .2015.
ii. Ministry of Finance Notification Nos. 21 & 22/2015- Service Tax dated 06-11-2015.
Ministry of Finance ‘vide their Notification Nos. 21 & 22/2015-Service Tax dated 06-11- 2015 have decided that Swachh Bharat Cess @ 0.5% shall be levied on the value of all taxable services w.e.f. 15-11-20-15.
2. Accordingly, following changes shall be made in the Commercial Circular No. 32 of 2015 dated 26-05-2015:-
“Service tax of 14% and Swachh Bharat Cess of 0.5 % are chargeable on 30% of total passenger fare equivalent to 4.35% of the total fare in first class and all AC classes.”
3. The increase in service tax shall be applicable w.e.f. 15-11-2015 on the tickets issued/booking made on or after 15.11.2015. Service Tax increase is not leviable on tickets issued prior to 15-11-2015.
4. Other terms and conditions shall remain the’same as per various circulars/notifications issued on this subject.
5. This issues with the concurrence of Finance Directorate of Ministry of Railways.
6. Necessary instructions shall be issued to the all concerned.
Source: Railway Board Circular
