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Service tax applicability

Queries 448 views 1 replies

Mini

Student CA Final

24 Points Posted on 21 March 2015

sir.

We are in the business of food processing.

we lift wheat from fci (central govt.) on behalf of state govt. As per the instruction of state govt, we convert this wheat into flour and supply it to FPS (fair price shop) nominated by state govt. wheat supplied by the govt. in under public welfare scheme to supply wheat to BPL people at subsidised rates (Food Safety Act)

the cost of wheat is fixed by central govt and cost of supplying aata is fixed by state govt. the differnce, if any is provided by govt or is taken by the govt from us.

are we covered under the ambit of service tax?

Replies (1)

Shiv prakash

000

87 Points Posted on 23 March 2015

Than what did you get from the goverment....

for your refrence As per Notification No.25/2012-ST Dated:20/06/2012 cluse 30-

Carring Out an intermidiate production process as job work in relation to agriculture is Exempt from service tax.

also in Guidence note issued by the CBEC on 20/06/2012 it is Clearly mention that..." processes of grinding, sterilizing, extraction packaging in retail packs of agricultural products, which make the agricultural products marketable in retail market... is not taxable.."