What is the GST rate on freight charges?
5%
Freight charges essentially mean a charge that is paid for transportation or carriage of goods. Such GST on transportation charges can be undertaken by way of land, air, or sea. GST rate on freight charges, as indicated above, are – (1) 5% (without input tax credit), (2) 12% (with input tax credit).
Is TDS applicable on railway freight?
TDS provisions are not applicable to payment made in respect of Railway Freights through third party: ITAT Kolkata [Read Order] | Taxscan.
Is Railway in loss or profit?
According to a report of the Comptroller and Auditor General of India (CAG), Indian Railways had incurred a loss of about Rs 26,388 crore in 2019-2020. The report also said that the operating ratio of Indian Railways for 2018-19 was 97.29%, which increased to 98.36% for 2019-20.
What percent of freight is moved by train in India?
Indian Railways (IR) is the fourth-largest rail network in the world having transported 1.2 billion tonne of freight in the fiscal year ending March 2020. Yet, 71 percent of India’s freight is transported by road, and only 17 percent by rail.
What is a freight tax?
Tax on freight generally follows the transaction the freight relates to. If the goods you sell are exempt and you charge your customer for freight or delivery charges or handling charges, then these charges are exempt.
Who has to pay GST on freight?
GST will have to be paid by the service recipient based on reverse charge in the event of the listed persons in the following table when GTA performs the freight service. 3.
Is GST applicable on railway freight?
Henceforth, GST shall be applicable on transportation charges @ 5% on rail transportation of railway equipment and material by goods train, Passenger/ Mixed/ Parcel trains. 3. These instructions shall come into force w.e.f 18.07. 2022 and shall remain applicable till further advice.
How is TDS on freight charges calculated?
But if the transporter owning more than 10 goods carriages at any time during the year, then you, as payers are liable to deduct TDS at the time of paying charges to goods transporter at the rate of 1% or 2% as the case may be; based on the transport contractor’s status.
Who is the owner of Tejas Express?
IRCTC
Lucknow – New Delhi Tejas Express, which was inaugurated on 4 October 2019, is India’s first train operated by private operators, IRCTC, a subsidiary of Indian Railways. The Ahmedabad – Mumbai Tejas express, also operated by IRCTC, was inaugurated on 17 January 2020.
What is the main source of earning of railways?
Freight is one of the major sources of income for Indian Railways. Freight is collected at a Railway Station (Loading Point) where a Customer (Individual or Corporate) books some goods for transporting to another Station (Destination) through Railway.
What percent of freight is moved by train?
The rail network accounted for approximately 28 percent of U.S. freight movement by ton-miles (the length and weight freight travels).
How much do trucks charge per km in India?
I’ve been researching this as a pet subject for years. I would be able to explain this in great detail but suffice to say, for now, the thumb rule for a truck is Rs. 50 per kilometre.
Should there be tax on freight charges?
California – As long as they are stated separately on the invoice and not more than the actual cost of delivery, shipping charges are not subject to sales tax in California. Delivery must also be through a common carrier, and handling charge are taxable, so they must be listed separately as well.
Is GST applicable on freight?
GST must be charged on the cumulative value of supply. If the freight charge is included, then GST on freight charges must be levied at the tax rate same as the rate charged on supply of the goods or consignment.
Is RCM applicable on railway freight?
No RCM on rail transport.
What is haulage charge in railway?
Haulage charge is the money private players will have to pay to Railways, on a per-km basis, for using its infrastructure in operating the trains – track, signaling, associated manpower and the like.
Is GST applicable on surcharge?
Surcharge is a type of penalty or late fee charged by the supplier of service. It must form part of taxable value/transaction value under Section 15 (2)(d) of CGST Act. GST is applicable. It will be charged on billing.
IS 194q applicable on freight charges?
Yes, As Per This Section TDS Is To Be Deducted On Credit Or Payment Whichever Is Earlier.
What is freight charge?
Freight costs are also known as freight charges or freight rates. It is the amount paid to a carrier company for the transportation of goods from the point of origin to an agreed location.
Is Tejas Rajdhani private?
Lucknow – New Delhi Tejas Express, which was inaugurated on 4 October 2019, is India’s first train operated by private operators, IRCTC, a subsidiary of Indian Railways.
Is Tejas and Rajdhani same?
The Tejas-Rajdhani Express is a semi-high-speed train operated in India. Indian Railways started to upgrade Rajdhani coaches to Tejas coaches. This replaced its traditional LHB Rajdhani coaches. By using Tejas smart coach, Indian Railways aims to move to predictive maintenance instead of preventive maintenance.
How do you pay for freight trains?
Payment of railway dues on public traffic is required to be made in cash only except where under special circumstances, payment of freight by cheques, bank drafts. Credit Notes, E-payment or under “Weight only” system is authorised by the Railway Administrations.
Does Indian Railways make profit?
New Delhi:
In the preceding fiscal, the company had reported its profit after tax (PAT) at ₹ 4,416 crore, IRFC said in a statement. Revenue from operations for 2021-22 grew by 28.71 per cent and stood at ₹ 20,298.27 crore this fiscal as against ₹ 15,770.22 crore a year ago.
Is rail freight cheaper than truck?
Rail is considered one of the most cost effective modes of transportation, especially for large volumes traveling long distances. Due to its ability to move major quantities at one time, rail has a lower cost-per-ton-mile (the cost of moving one ton one mile) than truck.
How do rail operators make money?
How much profit do train companies make? On average train operating companies make two percent of profit, however not all train operators make a profit, and they only make a profit if they run their franchises successfully, which means attracting more passengers to travel and by offering a good service.