A firm is doing Para-boiling of Paddy for another firm (Not Milling). After Para-boiling, the paddy remains paddy, but it is Boiled Paddy and requires milling
Will this attract service tax ?
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Service tax on paddy para-boiling
Replies (1)
1.If this activity amounts to manufacture then the same shall be subject to excise duty...
2.If it is an activity in relation to agriculture...then it is exempted vide notification 25/2012-ST...I believe its drying and cleaning which has been specifically exempted vide this notification only...
Just go through the notification and the meaning provided therein...
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