Does job work of cashew attract service tax

This query is : Resolved

Jaison Dsouza (Querist)
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05 January 2015 Is service tax applicable on job work of cashew? Im an article assistant and the accountant says no service tax is chargeable. If service tax is chargeable please provide with substantial proof. Thank you.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 January 2015 Please see the negative list of services.

(d) Services relating to agriculture or agricultural produce by way of –
(i) agricultural operations directly related to production of any agricultural produce
including cultivation, harvesting, threshing, plant protection or seed testing;
(ii) supply of farm labour;
(iii) processes carried out at an agricultural farm including tending, pruning, cutting,
harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading,
cooling or bulk packaging and such like operations which do not alter essential
characteristics of agricultural produce but make it only marketable for the primary
market;
(iv) renting or leasing of agro machinery or vacant land with or without a structure
incidental to its use;
(v) loading, unloading, packing, storage or warehousing of agricultural produce;
(vi) agricultural extension services;
(vii) services by any Agricultural Produce Marketing Committee or Board or services
provided by a commission agent for sale or purchase of agricultural produce.

If it falls on the above service it will be exempted from service tax.

Mohit Singla

Mohit Singla (Expert)
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05 January 2015 Yes this would be liable to service tax. under negative list of service tax,As per Section 66D(f) of the Finance Act, 1994 any process amounting to manufacture or production of goods is not taxable service. if the process amounting to manufacture will be covered in Excise .No exemption in this regard has been provided under exemption notification.

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