Clarification on Service Tax Applicability for Mining Activities: Key Guidelines from Finance Bill 2007.

The circular addresses the applicability of service tax on mining activities before the Finance Bill, 2007. It clarifies that services related to site formation, clearance, and earthmoving have been taxable since June 16, 2005. However, coal cutting and mineral extraction activities, integral to mining operations, were not subject to service tax before June 1, 2007. Post-mining activities like handling and transportation are taxable under "Cargo Handling" and "Goods Transport by Road" services, unless conducted by non-road mechanical systems. These guidelines aim to resolve pending disputes based on individual case circumstances.

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