Peeling of cashews into kernel belongs to primary market?

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Jaison Dsouza (Querist)
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05 January 2015 Does the jobwork (peeling of cashew nuts into shells and kernel) come under the category of making it ready for the PRIMARY market so as to avail exemption from the service tax regime?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 January 2015 Milling of paddy into rice: When paddy is milled into rice, on job work basis, service tax is exempt under sl.no.30 (a) of exemption notification 25/2012-ST dated 20th June, 2012, since such milling of paddy is an intermediate production process in relation to agriculture.

On the same analogy the job work on cashew can be considered as intermediate production process in relation to agriculture and exempted from service tax.

Guest

Guest (Expert)

05 January 2015 There is Circular No. 143/12/ 2011 – ST issued by the department that specifically covers peeling of cashews to recover kernel within the definition of ....in relation to agriculture.

That should exempt you from application of service tax.

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