Service tax on transportation of milk

Service tax department issued a circlar about service tax on transportation of milk by train/vessel. Service tax department cleared that service tax is chargeable on it. Service tax department issued a circular no. 167/2013 dated 1 January 2013. Full circular is as under.


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.
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