Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: empanelment :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: VAT RATES :: articles on VAT and GST in India :: list of goods taxed at 4% :: cpt :: ACCOUNTING STANDARD :: form 3cd :: Central Excise rule to resale the machines to a new company
 
 
« Service Tax »
 India’s E-Service Tax Will Add To Foreign Content Providers’ Woes
 GST Council to discuss model laws, tax jurisdiction today
 Tax Invoice Under GST
 Insurance may fall under 12% tax slab in GST, from 14% service tax currently
 GST draft makes it must for companies to pass tax benefit to consumers
 To speed passage, Government plans GST Bills as money Bills
 No service tax on train tickets booked through IRCTC till December 31
 GST Council meet postponed to December
 Banks integrating systems with RBI, GST Network to collect tax: Arun Jaitleya
 Service tax waived for online train ticket booking till Dec 31
 Key challenges in implementation of Goods and Services Tax

Tea Board wants service tax notice to Coonoor warehouses withdrawn
December, 23rd 2011

Tea Board members from the South have urged the Central Excise Department not to levy service tax on the tea stored in warehouses in Coonoor.

Recently, the Coonoor office of the Central Excise issued notices to some 14 warehouses for collecting service tax on the teas stored by them for Coonoor auctions. As this is a new development and warehouses in no other auction centre in the country have received such notices, warehouses in Coonoor have made representations not to levy service tax.

In pursuance of this, Tea Board members from the South have urged the department to drop the levy. I have represented to the Chief Commissioner of Central Excise and Service Tax, Chennai to instruct his Coonoor office to refrain from pursuing the notice. The tea stored in warehouse is the same tea defined by the Tea Act, 1953, viz., the plant Camellia Sinesis, including its varieties, and being an agricultural produce, is exempt from service tax, Mr P. Viswanathan, Tea Board member representing the Lok Sabha, told Business Line.

NO NEW PRODUCT

The Service Tax (Removal of Difficulty) Order, 2002, specifically exempts tea. So, Coonoor excise office's contention is untenable, contended Mr Koshy Baby, Board member representing small growers.

To make the harvested green tea leaf marketable, the moisture has to be extracted because over 80 per cent of green leaf contains moisture. That is what is done in factories and no new product emerges or derived from another manufactured product.

The Supreme Court has also accepted that tea is not a manufactured product. Hence, it cannot suffer service tax at warehouses, observed Dr S. Ramu, Tea Board member representing factory owners.

We are taking up this issue at the Tea Board meeting scheduled for December 29 to urge the Commerce Minister press the matter with the Finance Minister, he said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Sitemap

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions