Service tax is payable by Tea industries

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..... Service tax is payable by Tea industries
Query (Issue) Started By: - Das sanjoy Dated:- 22-7-2015 Last Reply Date:- 22-7-2015 Service Tax
Got 1 Reply
Service Tax
Dear Sir, Let us know the applicability of Service tax on tea industries as it is agriculture base industries. '' Kindly advice the following services are taxable in normal case and Reverse charge mechanisim. a) Ser .....

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..... vice tax on freight outward for tea product. b) Service tax on freight inwards for store & Spares parts and any capital goods and other consumable items. c) Service tax on legal , consultancy on tea industries. d) Service tax on Security service and manpower service on tea industries. e) Service tax on work contract on tea industries. f) Service tax on car hire charges on tea industries. Reg .....

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..... ards Sanjoy Das ' Reply By Rajagopalan Ranganathan: The Reply: Sir, According to Section 65 B (5) of Finance Act, 1994 "agricultural produce" means any produce of agriculture on which either no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary .....

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..... market. Therefore in my opinion tea is not an agricultural produce according to above definition since tea leaves plucked from the plant are under going various process before it is rendered as marketable. Hence tea cannot be treated as agricultural produce. Therefore you are liable to pay service tax on all the service availed by you either through the service provider or under reverse charge m .....

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..... echanism.
Discussion Forum - Knowledge Sharing .....

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