Service Tax - Seed Testing - CBEC Clarifies
IT has come to the notice of the Board 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, Board clarifies 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, 1994.
Therefore, such services are not liable to Service Tax under section 66B of the Finance Act, 1994.
Circular No., Dated: November 26 2015