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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 ..... Whether 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 ..... 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: 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 clause (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 Financ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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) services 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, Whethe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 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 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 horticulture. "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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 inasmuch 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. X X X X Extracts X X X X X X X X Extracts X X X X
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