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

Service tax on loading and unloading: exemption applies when contractor retains supervision; recipient supervision triggers reverse charge.
Service tax treatment of labour for loading/unloading rice depends on supervision and control: if the supplier performs and supervises the loading/unloading, the activity is an exempt loading/unloading service notwithstanding charging by number of labourers; if the recipient supervises the supplied labour, the transaction is supply of manpower services and is taxable under the reverse charge mechanism.