National Federation of Indian Railwaymen
3, Chelmsford Road, New Delhi – 11O 055
Indian National Trade Union Congress (INTUC)
International Transport Workers’ Federation (lTF)
No. II/58/Part II
Shri. Arun Jaitley,
Hon’ble Finance Minister, Government of India,
Sub: Exemption from Service Tax in the case of Government Employees – who are policy holders of Postal Life Insurance – Regarding:
The National Federation of Indian Railwaymen (NFIR) invites your kind attention to the communication issued by the PLI Directorate, Department of Posts, Ministry of Communications & IT, Government of India vide No. 29-09/2013-Ll/ Service Tax dated 27/05/2015, revising the rates of Service tax upwardly pursuant to Ministry of Finance, Department of Revenue Notification No. 15/2015 – Service tax dated 19/05/2015.
Levying the Service Tax on the Policy holders of the Postal Life Insurance who happened to be the Government employees/employees of Public Sector/State Government is an unjustified action. It may kindly be appreciated that the policy holders (Government employees/employees of Public Sector etc) are required to pay the premium either monthly/qu arterly /half yearly/annually by reaching the nearest post office, thus there is absolutely no service being rendered by the Post Offices except collecting premium amount and issuing receipt. The very policy of imposing Service Tax is unjustified, causing irritation and resentment among Government employees. A feeling has generated among the staff working in the Central/State Governments that the Government has been unsympathetic towards them that too when no service is in fact being rendered to the Policy Holders by the Post Offices or any other agency connected with the government.
NFIR therefore requests the Hon’ble Finance Minister to kindly get the case reviewed for abolishing the policy for collection of Service Tax from the insurants of Postal Life Insurance (PLI)’ The Federation hopes that the Hon’ble Finance Minister would consider the request and make announcement through the General Budget for withdrawal of this Service Tax.
(Dr. M. Raghavaih)