Service tax applicability to food processing industry
This query is : Resolved
02 September 2014
my query is :
Is service tax applicable for doing job works for processing of Mango Pulp. materials Etc.. will supplied by Customer and our role is only using our Plant and Machinery, labour, process mangoes and produce Pulp and handover to supplier, for that customer will pay Charges as job work charges/hire charges and they will deduct TDS. in above scenario Service tax Applicable or Not ?
Is service tax applicable for doing job works for processing of Mango Pulp. materials Etc.. will supplied by Customer and our role is only using our Plant and Machinery, labour, process mangoes and produce Pulp and handover to supplier, for that customer will pay Charges as job work charges/hire charges and they will deduct TDS. in above scenario Service tax Applicable or Not ?
03 September 2014
Service tax shall be levied on the job work done by you.
Reason:
As per serial no.30(a) of Mega exemption notification 25/2012 dated 20.06.2012 job work in relation to agriculture is exempted.
And the defination of agriculture as per Section65B clause (3) is AGRICULTURE means the cultivation of plants and rearing of all life -form of animals.
Therefore processing of mangoes to get mango pulp cannot be said to related to job work of agriculture.
Therefore service tax shall be levied on same.
Reason:
As per serial no.30(a) of Mega exemption notification 25/2012 dated 20.06.2012 job work in relation to agriculture is exempted.
And the defination of agriculture as per Section65B clause (3) is AGRICULTURE means the cultivation of plants and rearing of all life -form of animals.
Therefore processing of mangoes to get mango pulp cannot be said to related to job work of agriculture.
Therefore service tax shall be levied on same.
Message likes :
1 times
22 March 2015
Thank You
i got the point
i got the point
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- Unregistered suppliers utility
- ITDS U/S.194T of Firm
- Difference between Date of Payment and Date of Deduction?
- Cash balance limit and property purchases limit
- Journal entry of busniess expenses
- Invertaded duty struture
- Non-Compliance documents have not been submitted by the contractors debited
- EXPORT COMMERCIAL INVOICE HSN CODE
- The TDS balance for March 26 shows a mismatch between the books and the portal; what should be done
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
