Service Tax ratio for manpower supply

[Ravindranath Inala]

Sir,

I am running a manpower supply at our place near Guntur of Andhra Pradesh. I am supplying manpower to Colleges, Research Stations and Agricultural Farms of Acharya N.G.Ranga Agricultural University. I am paying service tax of 12.36% regularly and filing returns.

As per the agreement during tenders, the university has agreed to pay total 12.36% percent.

As you have mentioned 25% and 75% the university has agreed to pay 100%.

Sir, shall I pay service tax for Agricultural labour, tractor driver and other employees working in Agricultural farm.

Kindly arrange to provide knowledge to me for the above queries.

Ravindranath

AI Summary

Agricultural services exemption may not apply when manpower is supplied to educational or research institutions, making the supply taxable.
The negative list exempts services relating to agriculture, including supply of farm labour and operations directly related to production, but that exemption applies only when labour is supplied for agricultural production. Labour supplied to a university, college or research station for education or research purposes does not automatically qualify as an exempt agricultural service; absent contractual bifurcation showing supply exclusively for farm production, the whole manpower supply may be liable to service tax.