Establishment and operation of Yatri Ticket Suvidha Kendra (YTSK)
Ref: Instructions issued vide CC no. 33,35,37,39,40 & 45 of 2014 and 21 & 59 of 2015
The scheme of YTSK was circulated vide Commercial Circular no. 33 of 2014 & draft agreement was circulated vide Commercial Circular No. 39 of 2014. Thereafter certain modifications were made in the scheme vide instructions mentioned above.
2. Letters from Railways as well as YTSKL Association seeking clarification on service tax on service charges collected YTSKL from passengers have been received and matter has been examined in consultation with the Accounts and Finance Directorates of Ministry of Railways and the following has been decided:-
(i) Service tax at the rate of 14% along with a 0.5% Swachh Bharat Cess (applicable from 15.11.2015) on the service charges as mentioned in para 8 of draft agreement enclosed with Commercial Circular no. 39 of 2014 shall be collected by YTSKL from the passengers. However, this taxability shall be subject to threshold limit under Notification no. 33/2012-ST dated 20.06.2012 (As amended from time to time). Swachh Bharat Cess is not CENVATABLE against service tax on output service under CCR 2004.
(ii) As per para 68(1) of Service Tax Act, liability to pay service tax on taxable services lies with the service provider. Hence, YTSKL himself/herself shall deposit the service tax collected from the passengers as per service tax rules.
(iii) YTSKL shall deposit service tax on full service charges irrespective of share of concerned Zonal Railway in service charges. They shall pay service tax under the Reverse Charge Mechanism (RCM) as service recipient w.e.f. 01.04.2016 as per General Budget 2016-17.
(iv) YTSKL shall submit a report of daily remittances deposited through RTGS/NEFT along with receipt/e-receipt of RTGS/NEFT in line with para 13.5 (iii) of draft agreement enclosed with Commercial Circular no. 39 of 2014
3. CRIS will make necessary modifications in the software and provide the facility of printing of service tax and cess on the ticket issued by YTSK.
4. This issues with the concurrence of Accounts Directorates of Ministry of Railways.
5. Necessary instructions may be issued to all concerned.
Indian Railways issued orders regarding the above subject on 07.01.2016