Rice is not an agricultural produce

This query is : Resolved 

17 February 2017 Why rice is not an agricultural produce?

17 February 2017 Section 65B(5) of the Finance Act, 2012, had excluded certain commodities including Rice from the earlier definition of agricultural produce, in their understanding Rice as an agricultural product continued to be exempt from the levy of Service Tax. However, they also indicated that they had sought a clarification from their Administrative Ministry and the Ministry of Finance on the correctness of their interpretation. -

17 February 2017 Rice is harvested from paddy and is hence not a direct agricultural produce.


17 February 2017 But processing/ milling of rice from paddy on job work basis is exempt from service tax levy vide Entry 30 of Mega Exemption Notification.



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