Indian Railway under lens for alleged Rs 300-crore service tax evasion

Indian Railway has come under the scanner of revenue authorities for alleged Service Tax evasion of about Rs 300 crore on a few services offered by it.

The railways has been asked to share details of income from all its 16 zones, especially through tatkal, ticket cancellation and bed roll charges, official sources said here.

The central revenue officials have sought details of Service Tax paid by the railways, they said.

"We have noticed that railways and its zones are not discharging their service tax liability on tatkal charges, cancellation charges and bed roll charges. An investigation is being conducted into the matter and relevant details have been sought," a source said.

Railway Ministry officials said whatever Service Tax is levied by it is at the instance of Finance Ministry.

On other Service Tax issues, Railway administration and Service Tax authority are in discussion. As a responsible government department, we are committed to complying with the government norms, they said.

The revenue authorities said though the railways was collecting Service Tax on tatkal, ticket cancellation and bed roll charges from the customers, it was not remitting it to the department. "There is alleged short payment of Service Tax. The matter is being investigated. The estimated alleged Service Tax evasion by the railways is Rs 300 crore," the source claimed.