No Service tax on transportation of goods by rail/vessel transportation also includes milk

The service by way of transportation of milk by rail or a vessel from one place in India to another, is covered by the Notification No.25/2012-ST dated 20.06.2012 and no service tax will be charged on transportation. Central government has issued notification no 25/2012 which has exempted list of services from service tax in public interest. Read Notification No. 25/2012

Service Tax Circular No.167/2 /2013 dated, 1st January, 2013

Subject: Service tax on services by way of transportation of goods by rail/vessel – transportation of milk – regarding.

Representation has been received from the Indian Railways seeking clarification as to whether service by way of transportation of milk by rail is covered by Notification No.25/2012-ST dated 20.06.2012, serial number 20(i).

2.         The representation has been examined. The expression ‘foodstuff’ appearing in Notification No.25/2012-ST dated 20.06.2012, serial number 20(i) includes milk. Therefore, it is clarified that the service by way of transportation of milk by rail or a vessel from one place in India to another, is covered by the Notification No.25/2012-ST dated 20.06.2012.

3.         Trade Notice/Public Notice may be issued to the field formations and tax payers. Please acknowledge receipt of this Circular. Hindi version follows.

Notification No.25/2012-ST dated 20.06.2012.: The Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the following taxable services from the whole of the service tax leviable thereon under section 66B of the said Act, namely:-

 

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