Author : Anonymous
( Author )
24 May 2012
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our client is a company , who is operating the rigs borewell drilling vehicles , on which the turnover is Rs.60 lacs , now recently the service tax dept has issued a notice , saying that , you are liable to pay service tax .
my queries are :
1. rigs borewell operates for irrigation purpose partly for agriculutural & partly for commercial purpose , under which clause the liability areises i.e a) supply of tangible services (right to use tangible goods ) or (b) under site formation , evacuation.
2. further , if rigs drilling borewell activity operates entirely for agricultural purpose , is there any exemption notifications , for justifying the non-applicability of service tax on rigs borewell business , since this busineess has spread everywhere , it mainly operates in tamilnadu .
Can anybody , clarrify me , regarding this issue.
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