St on gta service

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

10 June 2017 We are manufacturing a product for which Main Raw Materials are Agri Procucts, Rice, Pulses, Oil Cakes etc. We get them in trucks & pay freight. Are we liable to pay service tax on that under GTA or it is exempted?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 June 2017 Only agricultural produce transportation is exempted from service tax.
Agricultural produce has also been defined in section 65B of the Act which means any produce of agriculture on which either no processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market.
Rice transportation is exempted from service tax but not oil cake.

Querist : Anonymous

Querist : Anonymous (Querist)

10 June 2017 Dear Sir, Thank you very much.

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Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2017 Dear Sir, It means in case any Service Tax has been wrongly paid by us, we can claim refund for the same. Plz provide a brief introduction of the same. We have not passed on the burden of the same to anybody.