TaxTMI 
TaxTMI 
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.
SERVICE TAX
16 May 2015 
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Service tax exemption for intermediate production processes questioned after exclusion for goods used in alcohol manufacture.
Previously, Serial No. 30 of Notification 25/2012 exempted intermediate production processes as job work, including milling of paddy into rice, and trade guidance treated such milling as covered by the exemption. Amendments introduced by the Finance Act 2015 substitute "any goods" with "any goods excluding alcoholic liquors for human consumption" and remove intermediate production process as job work in relation to manufacture of alcohol from the negative list, thereby calling into question the tax treatment of milling of rice for alcohol manufacture. (AI Summary)
Previously, Serial No. 30 of Notification 25/2012 exempted intermediate production processes as job work, including milling of paddy into rice, and trade guidance treated such milling as covered by the exemption. Amendments introduced by the Finance Act 2015 substitute "any goods" with "any goods excluding alcoholic liquors for human consumption" and remove intermediate production process as job work in relation to manufacture of alcohol from the negative list, thereby calling into question the tax treatment of milling of rice for alcohol manufacture. (AI Summary)