SERVICE TAX ON MILLING OF RICE

[pankaj jain]

Respected Ganeshan Kalyani ji,

milling of rice is an intermediate production process as job work for manufacture of alcohol. . As per finance act 2015 ,new changes in notification no. 25/2012-ST shall be effective from notified date.(expected to be notified soon). In entry 30, in item (c), for the words “any goods”, the words “any goods excluding alcoholic liquors for human consumption,” shall be substituted vide notification no. 06/2015 . Intermediate production process as job work in relation to manufacture of alcohol has omitted from the negative list (as per above said changes) . Please clear that the service tax on milling of rice will be applicable or not in the light of the above changes.

AI Summary

Rice Milling Exempt from Service Tax; Intermediate Processes in Alcohol Manufacturing Taxable Per Finance Act 2015 Amendments. A query was raised about the applicability of service tax on the milling of rice, which is an intermediate production process for manufacturing alcohol. According to the Finance Act 2015 and changes in notification no. 25/2012-ST, the exclusion of alcoholic liquors for human consumption from the negative list affects the tax status. The response clarified that milling of rice is exempt from service tax, while the intermediate production process related to alcohol manufacturing is taxable.