SERVICE TAX

[pankaj jain]

D.O.F. No. 334/03 /2014-TRU dt 17/2/2014 for applicability of Service Tax on milling and storage of rice. In view of the said notification please advise whether service tax will be applicable on milling of rice which will be used in manufacture of alcohol for human consumption on which service tax is already applicable as per finance bill 2015.

AI Summary

Debate on Service Tax Exemption for Rice Milling in Alcohol Production: Notification 25/2012 vs. Changes in Notification 06/2015. A discussion on the applicability of service tax on the milling of rice used in manufacturing alcohol for human consumption, referencing Notification 25/2012 and the Finance Bill 2015. One participant cites that milling is considered an intermediate production process exempt from service tax, according to Serial no. 30 of Notification 25/2012. Another concurs with this interpretation. However, the original inquirer notes upcoming changes in Notification 06/2015, which exclude alcoholic liquors from the exemption, raising questions about the continued applicability of the service tax exemption for milling rice intended for alcohol production.