Services of transportation of goods by rail under service tax
Services by way of transportation by rail or a vessel from one place in India to another of the following goods is exempt from service tax vide notification no. 3/2013 dated 1/3/2013
(a) Relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap;
(b) Defense or military equipments;
(c) Newspaper or magazines registered with the Registrar of Newspapers;
(d) Railway equipments or materials;
(e) Agricultural produce;
(f) Foodstuff including flours, tea, coffee, jaggery, sugar, milk products, salt and edible oil, excluding alcoholic beverages; or
(g) Chemical fertilizer and oilcakes;
In order to avail the exemption of this clause following conditions must be satisfied:
- Goods which are transporting must be specified goods which are specified hereinabove
- Transportation of specified goods shall be provide by rail