Whether service tax is applicable on cotton ginning process after implementation of Negative list? I think it should be covered under agriculture activity and hence exempted. However the process is done at ginning mill and not in agriculture farm.
07 July 2012
Similar question was also discussed in seminar of C.A. and as per language drafted there was a opinion that same is taxable.
But lot of process- activities are of such nature that is being done at place other than farm .
Looking at the intention of law not to cover agricultural activity under preview of service tax , some clarification relaxation is expected from Board in the matter but till that it is taxable.
CAclubindia
