Notifications/Circulars
Ø Seed testing and all ancillary
activities thereto are not liable to Service tax – CBEC clarifies
It came to the notice of the CBEC that certain field
formations have taken a view that all activities incidental to seed testing are
leviable to Service tax and only the activity in so far it relates to actual
testing has been exempted in the Negative List.
After elaborate interpretation of the words in the
Statute, the CBEC vide Circular No.
189/8/2015-Service Tax dated November 26, 2015 has issued clarification
that all testing and ancillary activities to testing such as seed
certification, technical inspection, technical testing, analysis, tagging of
seeds, rendered during testing of seeds, are covered within the meaning of
‘testing’ as mentioned in sub-clause (i) of clause (d) of Section 66D of the
Finance Act. Therefore, such services are not liable to Service tax under
Section 66B of the Finance Act.