With reference to our Do You Know Series 293, it is clarified that in first line 17 March 2014 should be read as 17 February 2014. Revised Do You Know Series 293 is produced as follows:

• Loading and unloading, packing, storage and warehousing of Rice have been exempted from levy with effect from 17 February 2014.

Notification no. 04/2014 dated 17 February 2014 amends the Notification no. 25/2012 dated 20 June 2012 i.e. mega exemption notification by introducing new entry numbered 40 which reads as follows:

“Services by way of loading, unloading, packing, storage or warehousing of rice”

Impact (Refer Circular no. 177/3/2014-ST dated 17 February 2014)

Transportation of Rice, either by rail or vessel or a goods transport agency, was exempt from levy vide entry number 20 (i) and 21 (d) of mega exemption notification. However, loading and unloading, packing, storage and warehousing of Rice were not exempt. Entry 20 (i) and 21 (d) of mega exemption notification read as follows:

“20 Services by way of transportation by rail or a vessel from one place in India to another of the following goods:

Food stuff including flours, tea, coffee, jiggery, sugar, milk products, salt and edible oil, excluding alcoholic beverages;  

21 Services provided by a goods transport agency, by way of transport in a goods carriage of:

(d) Food stuff including flours, tea, coffee, jiggery, sugar, milk products, salt and edible oil, excluding alcoholic beverages;”

This was for the reason that Rice was not covered in definition of “agricultural produce”; while Rice was treated as “food stuff”.

By virtue of entry number 40 in mega exemption notification, with effect from 17 February 2014, loading and unloading, packing, storage and warehousing of Rice would also be exempt from Service Tax levy.

Further, milling of paddy into Rice, on job work basis, would continue to be exempted from levy vide entry number 30 (a) of mega exemption notification, which reads as follows:

“30 Carrying out an intermediate production process as job work in relation to:

Agriculture, printing or textile processing”

• Specified services provided by Cord Blood Banks have been exempted from levy with effect from 17 February 2014.

Notification no. 04/2014 dated 17 February 2014 amends the Notification no. 25/2012 dated 20 June 2012 i.e. mega exemption notification by introducing new entry numbered 2A which reads as follows:

“Services provided by cord blood banks by way of preservation of stem cells or any other service in relation to such preservation”