(a) the details of categories of mandis which attract service tax
in the country;
(b) whether any changes have been made in this regard recently;
(c) if so, the details thereof and reasons therefor, category-wise; and
(d) the fiscal steps taken or proposed by the Government to relieve mandi
owners from tax burden?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S. S. PALANIMANICKAM)
(a) Service Tax is levied not on an entity, such as mandi. It is levied on
taxable services mentioned in sub-clauses of clause 105 of section
65 of the Finance Act 1994. Therefore service tax is levied on a
prescribed service provided or to be provided, unless specifically
exempted.
(b) No.
(c) Nil in view of reply above.
(d) The Government has exempted from service tax the Business
Auxiliary service provided by a Commission Agent in relation to
sale or purchase of agricultural product vide Notification No.
13/2003 - Service Tax dated 01.07.2003. Also Business Auxiliary
service provided by any person in relation to agriculture is exempt
from service tax vide Notification No. 14/2004 - Service Tax dated
10.09.2004. Similarly, any service provided for storage of
agriculture produce is not chargeable to service tax under Stoiage
and Warehousing Service [Section 65 (102) read with Section 65
(105) (zza) of the Finance Act, 1994].