No service tax on transportation of milk by rail or vessel
The Finance Ministry has made it clear that transportation of milk by rail or a vessel will not attract service tax.
The Central Board of Excise and Customs (CBEC) has issued a circular to this effect.
This clarification has come in the wake of queries received from Railways as to whether the service of transportation of milk by rail is covered by an exemption notification issued in June 2012.
The expression ‘foodstuff’ specified in the exemption notification would cover ‘milk’ and hence no service tax will be applicable on transportation of milk by rail/vessel, the CBEC has clarified.
The CBEC notification--called mega exemption notification-- issued in June 2012 specifically provides service tax exemption on transportation by rail/vessel of foodstuffs including flours, tea, coffee, jaggery, sugar, milk products, salt and edible oil, excluding alcoholic beverages.
courtesy: Business Line
Source: Service tax Circular No. 167/01/2013-ST
regards
ca srinivasan rm
karaikudi
The Finance Ministry has made it clear that transportation of milk by rail or a vessel will not attract service tax.
The Central Board of Excise and Customs (CBEC) has issued a circular to this effect.
This clarification has come in the wake of queries received from Railways as to whether the service of transportation of milk by rail is covered by an exemption notification issued in June 2012.
The expression ‘foodstuff’ specified in the exemption notification would cover ‘milk’ and hence no service tax will be applicable on transportation of milk by rail/vessel, the CBEC has clarified.
The CBEC notification--called mega exemption notification-- issued in June 2012 specifically provides service tax exemption on transportation by rail/vessel of foodstuffs including flours, tea, coffee, jaggery, sugar, milk products, salt and edible oil, excluding alcoholic beverages.
courtesy: Business Line
Source: Service tax Circular No. 167/01/2013-ST
regards
ca srinivasan rm
karaikudi
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