Service Tax on Rice

[abbas mukhi]

Sir,Earlier the Service Tax was applicable on activities related to Rice as the same was not considered as agriculture produce by ST department.however later the exemption was also extended loading and unloading of Rice. My Question: We are providing supply of labour for loading and unloading of Rice.whether service tax is applicable on it ???

AI Summary

Clarification on service tax exemption for labor in loading and unloading rice: supervision determines tax status. A discussion on whether service tax applies to labor supplied for loading and unloading rice. Initially, service tax was applicable as rice was not considered an agricultural product. However, exemptions were later extended. The main issue is whether the service provided falls under 'supply of manpower services,' which is taxable, or 'loading and unloading services,' which is exempt. It is clarified that if the labor is under the provider's supervision, it qualifies as the latter and is exempt from service tax, regardless of the payment method based on the number of laborers.