TaxTMI 
TaxTMI 
Sir,
Is Service tax is liable in trading activity . Please guide .
SACHIN
SERVICE TAX ON TRADING ACTIVITY
15 Jul 2011 
3 Replies 
13678 Views Asked by
Trading treated as exempted service restricts CENVAT credit and mandates deemed valuation on traded goods.
An explanation to clause (d) of the CENVAT credit Rules treats Trading as exempted services, triggering either separate accounting or payment equal to five percent of the value where inputs or input services are used for trading; sub rule (3D) of Rule 6 deems the value for trading to be the difference between sale price and purchase price when ordinary valuation is not available. (AI Summary)
An explanation to clause (d) of the CENVAT credit Rules treats Trading as exempted services, triggering either separate accounting or payment equal to five percent of the value where inputs or input services are used for trading; sub rule (3D) of Rule 6 deems the value for trading to be the difference between sale price and purchase price when ordinary valuation is not available. (AI Summary)