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Indian Service Tax

Survey and Exploration of  Mineral Services

Effective

Date: 10/09/2004.

Authority: Finance (No.2) Act, 2004

Rate of Service Tax: 10% - Cess 2% of 10% = 0.2. Total ST = 10.2%.

Definition

"survey and exploration of minerl'means geological, geophysical or other prospecting, surface or sub-surface surveying or map making service, in relation to location or exploration of deposits of mineral, oil or gas; [Section 65 (104a)]

Taxable service: Taxable service means any service provided to a customer, by any person, in relation to survey and exploration of mineral; [Section 65 (105) (zzv)]

Value of taxable service: Gross amount Exemptions: See Notification No. 18/2004-ST, dt. 10/9/2004 at the end of the Chapter of' "Airport Services". Soil testing, non-mineral objects

Person liable to pay

Survey and Exploration of Mineral Service provider

Head of Account

To be issued.

Main text of Department Circular/Trade Notice

F.No. B2/8/2004-TRU Date: 10/9/2004

07 . Survey and exploration of minerals

The service tax would be leviable when the service of survey and exploration of minerals is provided by any person to a customer. The survey and exploration may result in locating ores, crude etc. Subsequent to survey and exploration, the mineral is extracted and transported for refining, processing and production. The service tax under this category would be limited to the services rendered in relation to survey and exploration only and not on the activity of actual extraction after the survey and exploration is complete. The transport, refining, processing or production of the extracted products would also be out of the ambit of service tax. Activities such as seismic survey, collection/processing/interpretation of data and drilling or testing in relation to survey and exploration would, however, fall within the ambit of taxable service.