Service tax on cotton ginning process
This query is : Resolved
JINESH SHAH
(Querist)
06 July 2012
Dear Sir,
Whether service tax is applicable on cotton ginning process after implementation of Negative list? I think it should be covered under agriculture activity and hence exempted. However the process is done at ginning mill and not in agriculture farm.
Please advice.
Thanks.
Whether service tax is applicable on cotton ginning process after implementation of Negative list? I think it should be covered under agriculture activity and hence exempted. However the process is done at ginning mill and not in agriculture farm.
Please advice.
Thanks.
07 July 2012
Similar question was also discussed in seminar of C.A. and as per language drafted
there was a opinion that same is taxable.
But lot of process- activities are
of such nature that is being done at place
other than farm .
Looking at the intention of law not to cover agricultural activity under preview of service tax , some clarification
relaxation is expected from Board in the
matter but till that it is taxable.
Similar question was also discussed in seminar of C.A. and as per language drafted
there was a opinion that same is taxable.
But lot of process- activities are
of such nature that is being done at place
other than farm .
Looking at the intention of law not to cover agricultural activity under preview of service tax , some clarification
relaxation is expected from Board in the
matter but till that it is taxable.
Kaushik Vinod
(Expert)
09 July 2012
I think Mr. Acharya is absolute right .
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