Service tax exemption on Agricultural produce.

[Rajendra Kumar Mandourney]

Sir,
Hello,
As per govt service tax notificaiton 12/2012 Agricultural produce has been exempted for service tax. This Agricultural Produce does not indicate the variety of produce following in it, hence unable to get correct defination. I am having my transhipment commision agent buisness, therfore I want to know wether following items comes under Agricultural Produce or not. Are these items are exempted or not as service tax point of view.

Turmeric, Tapioca Sago, Ground Nut Seeds, Pulses, Mustard, Ajwain, Watery Coconut, Dry Coconut, Desicated Coconut Powder / Flakes, Magnesium Sulphate, Sugar, Jaggery, Red chilly, Nut (Supari) , Mustard seeds,  ........ etc.

Please guide me on this issue so as to pay correct service tax to the govt.

Thanks

Rajendra Kumar

[Mahir S]

THe services provided herein falls under service tax. 

The exemption from service tax notifcaton no. 12/2012  shall nto be applicable in your case.

[Dilip Darji]

Dear Sir.

Though the Services relating to agriculture are covered in Negative List, the the activity of earning commission for transhipment of agriculture does not cover in the definition of "agricultre" and therefore service provided by you would be liable to Service Tax.

AI Summary

Agricultural produce exemption does not cover commission for transshipment, making such commission services subject to service tax. The exemption for agricultural produce does not extend to commission-earning transshipment services because such intermediary activities are not covered by the definition of agriculture; therefore commission for transshipment of agricultural items falls outside the exemption and is taxable as a service.