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Excise Dept., and Service Tax on crushing charges is emanded from WCL, the amount of Service Tax and 4ther related levies applicable there n towards 'the quantity of crushed ROM coal suppli W you during the period 2007-08 to 2011-12 should be paid by you
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94 tons of coal sold at $2,475 (amount taxpayer will collect) $2,475 ÷ 94 tons (price per ton recalculated) = $26.33 per ton of coal . Excise tax limited to $1.10 per ton. 94 tons of coal x $1.10 per ton = $103.40 (If the tax had been collected at 4.4 percent on 100 tons, the amount would have been $2,475 x 4.4 percent = $108.90).
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Service Tax: Where assessee in terms of an agreement with one 'B' was required to provide following services to 'B': (i) transportation of coal, and (ii) coal crushing against payment of Rs. 175 per MT, activity of crushing of coal carried out by assessee would be covered under category of business auxiliary service .
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Mining Service- Applicability of Service Tax on activities undertaken in mining sector before 1-6-2007– Vide appropriate entry in the Finance Act, 2007,'service provided by any person to any person in relation to mining of minerals, oil or gas' has been comprehensively brought under the ambit of service tax with effect from 1.6.2007 ...
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Such activities, being part of mining operations itself are subjected to service tax. Therefore, service tax is leviable on such activities. SERVICE TAX EXEMPTIONS: TOP (a) Small service providers whose aggregate value of taxable services rendered in the previous year has not exceeded the limit of Rs. 10,00,000/- (Service Tax Notification No ...
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