Applicability on rigs borewell business

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Querist : Anonymous

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Querist : Anonymous (Querist)
24 May 2012 our client is a company , who is operating the rigs borewell drilling vehicles , on which the turnover is Rs.60 lacs , now recently the service tax dept has issued a notice , saying that , you are liable to pay service tax .
my queries are :
1. rigs borewell operates for irrigation purpose partly for agriculutural & partly for commercial purpose , under which clause the liability areises i.e a) supply of tangible services (right to use tangible goods ) or (b) under site formation , evacuation.
2. further , if rigs drilling borewell activity operates entirely for agricultural purpose , is there any exemption notifications , for justifying the non-applicability of service tax on rigs borewell business , since this busineess has spread everywhere , it mainly operates in tamilnadu .
Can anybody , clarrify me , regarding this issue.

16 July 2014 I WOULD BE GRATEFUL IF YOU SHARE THE COPY OF SHOW CAUSE NOTICE.. Email Address: pdmulani@yahoo.co.in

AWAITING YOUR REPLY

16 July 2014 Respected Sir,

As I am also having one client to whom department (preventive wing) started the inquiries..

Best Regards,
PRADEEP MULANI


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Querist : Anonymous

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Querist : Anonymous (Querist)
16 July 2014 There is no liability of service tax , if Rig borewell exclusievely for agricultural activity , since , there is a specifically , operation of rig borewell for agriculture is excluded , in the act , kindly go thru the definition part og rig borewell in finance act 1994.



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