Service tax notification 25/2012 st
MANOJ
(Querist) 12 July 2015
This query is : Resolved
Dear Sir
One of our client is in manufacturer of Animal Feed / Poultry Feed. He is paying GTA – service tax under reverse charge on transportation of Raw Material & FG. Raw material which he is purchasing for manufacturing feed includes Rice , soya etc. Can my client claim exemption under notification 25/2012 which says as follows – 20. Services by way of transportation by rail or a vessel from one place in India to another of the following goods - (h) agricultural produce; (i) foodstuff including flours, tea, coffee, jaggery, sugar, milk products, salt and edible oil, excluding alcoholic beverages; or 21. Services provided by a goods transport agency by way of transportation of - (a) fruits, vegetables, eggs, milk, food grains or pulses in a goods carriage; Also word agriculture produce is defined in Excise. Can our client claim exemption in service tax reverse charge on transportation of Animal Feed on basis of this definition.
Thnak & Regards
S R agrawal
(Expert) 13 July 2015
Dear Mr. Manoj,
The answer of your query is in the narration of your query itself.
S.no. 20 of the notification is not relevant as it is related to the transportation by rail or vessel and not transportation by Road. However, S.No. 21 of the notification is squarely applicable. Rice etc. are covered under food grain. As such transportation of rice is exempt and no Service Tax is payable either by the Service provider or by the Service recipient under reverse charge.
Thanks,
S R AGRAWAL.
