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TMI BlogWhether ST applicable on Tree Plantation service by Govt.Authority to Business Entity??X X X X Extracts X X X X X X X X Extracts X X X X ..... Sir, My organisation had entered into agreement with one of the Govt. organisation (I.E GUJARAT ECOLOGICAL COMISSION) for PLANTATION FOR TREES in certain hectares of area for getting ENVIRONMENT CLEARANCE Whether above activity is SERVICE ?? Whether amount paid to Gujarat Ecological Commission is liable for Service Tax under Reverse Charge mechanism ?? - Reply By Rajagopalan Ranganathan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - The Reply = Sir, Please refer to Sl. No. 6 of Notification No. 30/2012-ST dated 20.6.2012 (with effect from 1.7.2012) wherein it is stated that in respect of services provided or agreed to be provided by Government or local authority by way of support services excluding,- (1) renting of immovable property, and (2) services specified in sub-clauses (i), (ii) and (iii) of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lause (a) of section 66D of the Finance Act,1994 100% service tax is payable by the service receiver. Sub-clauses (i) (ii) and (iii) of clause (a) of Section 66D of Finance Act 1994 are: - (i) services by the Department of Posts by way of speed post, express parcel post, life insurance and agency services provided to a person other than Government; (ii) service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport; (iii) transport of goods or passengers. - Reply By hardik thacker - The Reply = Exactly Sir, But, Whether the activity as described can considered as Agriculture Activity and hence exempt from paying Service Tax ???? - Reply By ganeshan kalyani - The Reply = In simple sense an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... activity you yourself carried in farm for cultivation would be considered as agricultural activity. From Mr.Rajagopalan sir reply it becomes clear that such service is taxable. - Reply By KASTURI SETHI - The Reply = Yes. Tree plantation activity is a service. It falls under the definition of horticulture. Though horticulture is a branch of agriculture but no exemption is available to horticultu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re. Horticulture is neither mentioned in Negative List specified under Section 66 D (i to vii) of the Finance Act, 1994 nor in the list of Exempted Services in Mega Exemption Notification No.25/12-ST dated 20.6.2012. Moreover, Horticulture is out of definition of Agriculture ' defined under Section 65 B (3) of the Finance Act. No benefit of Reverse Charge Mechanism is available inasmuc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h as this service does not find place in Notification No.30/12-ST dated 20.6.2012. Hence Service Tax has to be paid in full by the Service Provider. - Whether ST applicable on Tree Plantation service by Govt.Authority to Business Entity?? - Query Started By: - hardik thacker Dated:- 16-9-2015 Service Tax - Got 4 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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