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
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.