CBEC has clarified that expression “food stuff” mentioned at serial no. (20)(i) in Notification No.25/2012-ST dated  20.06.2012 includes milk. Therefore, service by way of transportation of milk by rail or a vessel from one place in India to another, is exempt from service tax in pursuance of above notification.

Circular No.167/2/2013 – ST, New Delhi, 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.

(S. Jayaprahasam)

Technical Officer, TRU

Tel: 011-23092037

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