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.
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22 March 2015
Thank You
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