Agriculture Meaning Under Service Tax

Henceit is not a service relating to agriculture and hence taxable.

Bsc agriculture nagpur. India is an agricultural country. Service tax is a tax levied by the government on service providers on certain service transactions but is actually borne by the customersit is categorized under indirect tax and came into existence under the finance act 1994. Relevant service tax notifications.

Stud farms are used for rearing horses and rearing of horses are not covered in agriculture definition agriculture means the cultivation of plants and rearing of all life forms of animals except the rearing of horses for food fibre fuel raw material or other similar products. Agricultural extension services have also been defined in section 65b of the act as application of scientific research and knowledge to agricultural practices through farmer education or training. Definition and meaning of term services under service tax the statutory definition of term service is given below service means any activity carried out by a person for another for consideration and includes a declared service but shall not include a an activity which constitutes merely a transfer of title in goods or immovable property by way of sale gift or in any other.

Definition related agricultural service. Relevant service tax circularsinstructionstrade notices. Top taxation of services an education guide dated.

Service tax on gta under rcm dropped stating revenue neutrality. In the new regime of service tax at the outset service has been defined in clause 44 of section 65b of the finance act 1994 act. As per section 65b3 of the act it means the cultivation of plants and rearing of all life forms of animals except the rearing of horses for food fibre fuel raw material or other similar products.

The definition of agricultural produce as per service tax education guide published by cbec. Is rice an agricultural produce for service tax law. Agriculture related service 11.

Agricultural operations directly related to production of any agricultural produce including cultivation harvesting threshing plant protection or seed testing. Therefore the government has been allotting substantial portion of budgetary expenditure for the development of the agricultural sectors and besides play significant role to provide tax exemptions and tax benefits to the cultivators in agricultural sector for the. In this case the service provider pays the tax and recovers it from the customerservice tax was earlier levied on a specified list of.

Notification no 252012 dated 20062012 exemption notification notification no 442012 dated 07082012 exemption notification notification no 042014 dated 17022014 exemption notification. Taxability of services relating to agriculture or agriculture produce covered under negative list following services relating to agriculture or agriculture produce are not taxable. Here is one of the examples of rice and issues shall be dealt accordingly.

See notes 1 2 and 5 supply of farm labor. Section 66b specifies the charge of service tax which is essentially that service tax shall be levied on all services provided or agreed to be provided in a taxable territory other than services specified in.