service tax on railways

Service tax on travel by Railways in first class or air-conditioned coaches as well as transport of goods by railways exempted upto 30th September 2012. So expect increase in train fares from 1st October 2012 for those travelling by first class or air-conditioned coaches, of which latter is usually the norm even for middle class passengers looking to travel in some comfort. Also with service tax on transport of goods kicking in from October 2012 do not expect inflation to abate. I think looking at the government inability to curb the monster called "inflation" of which the supply side constraints is baffling the government the most, it would have been wiser to leave transport of goods from the service tax ambit. But don't expect the revenue mandarins to think in the same way as the economists or the politicians who of course do not think at all of the common man!! The copy of the service tax circular can be found here