Notification 3/2013

[kamal chordia]

Dear Sir

Please note thatn Notification no 25/2012 is further amendment vide notification no 3/2013 wherein transporation  of goods through Goods Transport Agency is exempt in some cases as under

[1] Agricultural produce:

Please confirm that cotton is covered in agriculture produce or not (we are purchasing cotton for making cotton yarn)

Thanks & regards

Kamal

[Rama Krishana]

In my view cotton with seeds, i.e. before in original form would be falling within the category of agriculture produce. The cotton after ginning process and removal of cotton seeds, it would no longer remains as unprocessed agriculture produced. 

AI Summary

Amendment to Service Tax Exemption: Cotton with Seeds is Agricultural Produce; Processed Cotton is Not. Notification 3/2013 discusses an amendment to Notification 25/2012 regarding service tax exemptions for the transportation of goods by Goods Transport Agency. A participant inquired whether cotton qualifies as agricultural produce, relevant for their cotton yarn production. The response clarified that cotton with seeds in its original form is considered agricultural produce, but once processed through ginning and seed removal, it no longer qualifies as unprocessed agricultural produce.