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Issue ID: 1649
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Taxability under service tax - segregation of scrap and weighing of raw material

Date 11 Dec 2009
Replies1 Reply
Views 1916 Views
Business support service: segregation of scrap and weighing of raw material by contractors are taxable as outsourced business support services.
Segregation of scrap and post unloading weighing of raw material performed by external contractors constitute Business Support Service and are treated as taxable services under the classification for outsourced business support operations. (AI Summary)

We have appointed some Contractors to unload and weigh the raw material we receive and segregating of scrap generated out of our manufacturing process. Please indicate, if segregation of scrap and weighing of raw material after unloading are taxable service and if yes under what category? S.P. SHARMA

Service Tax
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Replied on Dec 12, 2009
1. Business Support Service
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