Agriculutre Service is exempt under Business Auxiliary Services

[Vijay Kewlani]

Hi,

Under business auxiliary services, some services are provided for agriculture equipment which are going to be used for agriculture purpose. So that services are exempt from service tax, if yes then please also mention the notification no. of the same.

Thanks in advance.

AI Summary

Services for Renting Agro Machinery Exempt from Service Tax per Section 66D of Finance Act 1994. A query was raised regarding the exemption of services related to agriculture equipment under business auxiliary services from service tax. The response clarified that according to clause (d)(iv) of Section 66D of the Finance Act, 1994, services related to agriculture, such as renting or leasing agro machinery, fall under the Negative List of Services. Consequently, these services are not subject to service tax.