Agriculutre Service is exempt under Business Auxiliary Services

[Guest]

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.

[Rajagopalan Ranganathan]

Sir,

According to clause (d)(iv) of Section 66D of Finance Act, 1994 (which enumerates Negative List)

services relating to agriculture or agricultural produce by way of-

(iv) renting or leasing of agro machinery or vacant land with or without a structure incidental to its use ,

is under Negative List of Services. Therefore providing for agriculture equipment which are going to be used for agriculture purpose is not chargeable to service tax.

 

 

AI Summary

Negative-list exemption for renting or leasing of agro machinery protects such services from service tax. Services supplying, renting or leasing agricultural equipment for agricultural purposes are covered by the Negative List: renting or leasing of agro machinery or vacant land (with or without incidental structures) is excluded from service tax, so such services are not chargeable to service tax.