Service tax applicability on commission agent

This query is : Resolved

Krishna Kryl (Querist)
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11 June 2016 Assessee is engaged in the business of Supply of Milk from the Principal to the dealers for which he is getting a commission at a fixed rate on the quantity of milk supplied. Is the assessee is liable to pay service tax on the commission he is getting as it covers under Intermediary of Goods. But as specified in the negative list supply of agriculture produce and animal produce were not liable for service Tax. The Query is whether supply of milk is considered under negative list ( as I think it is an animal produce ) and is not liable to Service Tax. Is the Interpretation of the law correct or Not?

PAWAN KUMAR

PAWAN KUMAR (Expert)
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11 June 2016 Dear Sir,
As per my view, the commission which you are getting for supply of milk, is liable for service tax. there is no exemption listed in the mega exemption.