10 April 2009
I work in rice industry where the movement of paddy/rice take place within the premise. We have hired the cotractors for doing that task. Monthly bill of the contractor is around 4L in a month. Whether service tax is applicable on this. Further another contractor is hired who is also involved in that kind of work plus supplying some labour in our prodution. Whether service tax is applicable on this as well? Kindly answer this query. It would be better if you mention the section under the respective Act.
13 April 2009
Service tax is applicable for defined services provided by defined service provider. Cargo handling - if within premises not in realtion to transportation therefore not liable GTA- No agent involved - direct contractor and it si not in relation to freight therefore not liable. Appears that there may not be a liablilty. Whether under business support services is what may require to be examined. Labour supply comes under manpower supply services which is liable. However if the contract is for specifically some process of husking etc, services in realtion to agriculture falling uynder BAS are exempt.
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