Service Tax in open cast mines

By Vijay Kumar

Board proposes to issue a circular clarifying issues relating to taxability of activities in open cast mines.

++ the activity of excavation/drilling and removal of overburden (whether or not containing traces of minerals) is taxable.

++ Outsourcing open cast mines – taxable under business auxiliary service.

++ Loading and unloading of coal and “overburden” which has no value falls under cargo handling service.

++ The transport of coal, within mines and outside mines is in the nature of transport of goods by road even if consignment notes are not issued and so taxable.

If you have any objection, tell the Board by mailing to geebeetru@rediffmail.com

See Draft Circular