Applicability of service tax on weighbridge income and commission income on freight

[samiuddin ansari]

Applicability of service tax on weighbridge income and commission income on freight earned by the person engaged in the processing of agriculture produce without losing its original character as Agriculture produce meant for domestic or export supply.

[Ganeshan Kalyani]

In my view the income is taxable.

[KASTURI SETHI]

Sh.Ansari Ji,

Pl. read Section 66 F (2) & (3) of the Finance Act, 1994 and Board's Circular No.186/5/2015-ST dated 5.10.15. The essence of both is that your services should be classified under Main Service which is in the Negative List or exempted and hence these three services cannot separated for levy of ST on auxiliary services, namely, weighbridge income and commission income on freight. Analogy can help you. Board's circular strengthens the view that auxiliary services cannot be broken up from Main Service. For your convenience the Circular is appended below:-

Levy on services of Goods Transport Agency Services (GTAs) - Clarifications

Circular No. 186/5/2015-S.T., dated 5-10-2015

AI Summary

Auxiliary services separation affects service tax liability where weighbridge and freight commission tied to an exempt main service.
Where a main service is in the negative list or exempt, ancillary services cannot be separated for imposition of service tax; thus weighbridge income and freight commission, being auxiliary to the main service (as clarified in the guidance on Goods Transport Agency services), are not to be taxed separately.