12 August 2013
In service tax is there is any exemption from service tax on transportiong of Tea by Road Transport, please provide me the Notification No. if any.
However there is exmption for Food grains, so please confirm whethere food grains includes TEA, Sugar, Coffie & edible oil. for transporting of these items By Road under Goods Transport Agency services.
13 August 2013
21. Services provided by a goods transport agency by way of transportation of -
(a) fruits, vegetables, eggs, milk, food grains or pulses in a goods carriage; (b) goods where gross amount charged for the transportation of goods on a consignment transported in a single goods carriage does not exceed one thousand five hundred rupees; or (c) goods, where gross amount charged for transportation of all such goods for a single consignee in the goods carriage does not exceed rupees seven hundred fifty;
Sir aforesaid is the abstract of original Notification 25/2012 dated 20/06/2012 where in nothing has been said about Tea, it is effective from 01/07/2012.
However there is an amendment on 01.03.2012 vide not. no 03/2013, w.e.f 01.04.2013 where in tea, sugar coffee, milk powder has been inserted specifically.
So is there is Tax liability from 01/07/2012 to 31/03/2013. is the food grain as said in notification before amendment, does not cover tea.? please help.
1. **Notification 25/2012 dated 20/06/2012**: This notification specifies exemptions for services provided by a goods transport agency (GTA) in certain cases. Initially, it did not explicitly mention tea among the exempted items under categories (a), (b), or (c).
2. **Amendment via Notification 03/2013 dated 01/03/2013**: This amendment specifically includes tea (along with sugar, coffee, and milk powder) under the exempted category of goods for transportation by a GTA. This amendment came into effect from 01/04/2013.
**Analysis:**
- **Period from 01/07/2012 to 31/03/2013**: Before the amendment (Notification 03/2013), tea was not explicitly mentioned as an exempted item under the GTA services exemption. The notification specifically mentions food grains, which typically include items like wheat, rice, pulses, etc. Tea, being a different category of commodity, may not have been covered under the term "food grains" as per the original notification.
- **Tax Liability**: Since tea was not covered explicitly under the exemption categories (a), (b), or (c) in Notification 25/2012 from 01/07/2012 to 31/03/2013, there could potentially be tax liability for the transportation of tea by a GTA during that period. This means that GTA services provided for the transportation of tea might have attracted service tax during this period unless other exemptions or provisions applied.
- **Effect of Amendment**: The specific inclusion of tea under Notification 03/2013 from 01/04/2013 onwards means that GTA services for the transportation of tea became exempted from service tax starting from that date.
**Conclusion:**
For the period from 01/07/2012 to 31/03/2013, GTA services for the transportation of tea may not have been exempted under the categories specified in Notification 25/2012. Therefore, service tax might have been applicable during that period unless covered under a different notification or exemption.
To ensure compliance and accuracy in tax filings, it's advisable to consult with a tax expert or legal advisor who can provide specific guidance based on the detailed provisions of the notifications and amendments in question. They can help interpret the notifications accurately and advise on any retrospective implications or adjustments that may be required.
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