Service Tax clarification

Queries 965 views 3 replies

Umesh Gulecha

Partner

24 Points Posted on 07 April 2009

I need clarification for two below mentioned queries.:

1. One of my client is acting as a commission brokers. He is acting as an agent for local importers for importing Raw Cashew Nuts in shell from Foreign countries to india on contract basis. He is getting commission from the importers. Whether service tax is applicable? Or exempt under the head of “Agricultural Products”.

and

2. Another client, he is also acting as a commission brokers. He is acting as an agent for local exporters for exporting processed cashewnets to foreign countries on contract basis. He is getting commission from the Exporters. Whether service tax is applicable? Or exempt under the head of “Agricultural Products”

Replies (3)

Rajesh Kumar

Advocate- Tax

7811 Points Posted on 07 April 2009

Exempt

Madhukar N Hiregange

Chartered Accountant

39039 Points Posted on 08 April 2009

As far as raw cashes are concerned they are specifically covered under the exemption notification under "nuts".

The processed cashews also wouldbe exempt where they couldbe considered processed foods. I am inclined to agree with Mr. Rajesh that normally processing could be said to be only to make the same marketable where the essential characteristics is not altered.

However there are disputes pneding before the Appellate authorities in this regard.

Warm Regards

Madhukar N Hiregange

Jignesh

Legal Manager

22 Points Posted on 09 April 2009

Dear Sir,

We are the Developer of SEZ. We would like to know that after issuing of Notifiction from the Ministry of Revenue regarding provision of Refund of Service Tax. My Quesitons is that if the Developer is the part of SEZ, Can Developer of SEZ levy tax on their service charges bill.

Thanks & Regards,

Jignesh Raval.

SEZ.