19 September 2007
Do we have to charge service tax on service contract. or not if yes answer the following:
Service tax on 1. Handling & shifting of Iron Ore within the siding of the mines 2. Hire charges on time basis 3. Loading & Unloading charges. 4. Screening charges of Iron/Ore etc
After facing several disputes while classifying Mining Anciliary Services under Business Auxiliary Services and Mineral Exploration Services in the past 3 years the Government has finally brought out a separate service category namely 'Mining Services'.
Section 65 (105) (zzzy) of the Finance Act 1994 w e f 01.06.2007 covers the aforesaid services.
Unfortunately the definition is very badly wider to cover 'any' service to any person by any other person 'in relation' to mining of mineral, oil or gas.
One has to go through the full text of your activities as well as agreement copies before coming to conclusion. As of now, this service category is expected to be hot & controversial category.