service tax on commision agent

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kiran bhandari (Querist)
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22 January 2009 the person dealing in agriculture products like mirchi, jaggery etc & the same is purchased from the farmers on behalf of the client & dispatch the same to the client. whether it would attract service tax under business auxillary service or notification no 14/2004 will apply.

CA Amarpal

CA Amarpal (Expert)
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22 January 2009 Dear Kiran,

As the given facts, the above services will be subject to tax under Business Auxillary Services.

And notificaion no. 14/2004 exempts the services from the service tax which are for the client who uses such services in the activities of agriculture, printing, education etc.

if the client is running any of above activities, then the services will be exempted, otherwise no exemption. For further clarification please contact amarpal@icai.org