Gta exemption on agriculture produce

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maulik sheth (Querist)

04 June 2013 I have done business of collecting
agriculture wastage, biomass wastage
and then convert it by some process
whether my activity is called agriculture activity and whether it is liable for exemption under service tax under gta

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)

05 June 2013 under GTA in respect of exemption is for transporter for providing transportation services in respect of fruits, vegetables, eggs, milk, food grains or pulses.( exemption on transportation charges)

For your services concerned i.e conversion of wastage, if it is amounts to manufacture or produce then No service tax as it is covered under negative list

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maulik sheth

maulik sheth (Querist)

05 June 2013 whether it is called agriculture produce
we are collecting biomass and agriculture
wastage and sales it for process done for
making pellets whether it is called
agriculture produce

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)

06 June 2013 Please read the meaning of agriculture produce as per service tax mentioned below and take the decision whether it amounts to agriculture produce:

Agriculture produce means any produce
of agriculture on which either no processing is done or such processing is done as is usually
done by a cultivator or producer which does not alter its essential characteristics but makes
it marketable for primary market. It also includes specified processes in the definition like
tending, pruning, grading, sorting etc. which may be carried out at the farm or elsewhere as
long as they do not alter the essential characteristics.

As per my view it is not agriculture produce,
Do let me know still if you need more clarification

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