1. Home
2. Letters

Why service-tax only on Speed Post

Kashmir Times. Dated: 1/28/2015 11:13:26 PM

Dear Editor,
It refers to Office Memorandum No. 36-71/2001-BD & MD dated 06.06.2006 which mentions that Service-Tax/Education Cess would be charged only on Speed Post (including Speed Post Gold) and Express Parcel Post while all other postal-services will remain exempted from these taxes and cess.
It is absolutely ridiculous that differentiation may be done in respect of imposing Service Tax and Education Cess in Speed Post service including Express Parcel Post and rest other postal-services. Otherwise also it is like money going from one pocket to another when both Department of Revenue and Department of Posts are part of same Union Government with even Union Budget accounting for postal-tariffs and profit/loss account of Department of Post. Department of Post does not have its own budget like there is a separate Union Railway Budget presented in the Parliament by Union Rail Minister. Department of Revenue and Department of Posts should coordinate so that Service Tax and Education Cess may be abolished even on Speed Post and Express Parcel Post run by Department of Posts.
—Madhu Agrawal,
1775 Kucha Lattushah Dariba Delhi.