Applicability of service tax on poultry farming

[Ganeshan Kalyani]

I would like to discuss on applicability of service tax on the arrangement which is as below:

M/s. XYZ company gives poultry birds (hen) to Mr.A, who will take care of those hen in his poultry farm and supplied back to the company the eggs layed by the poultry birds (hen). In return for the service rendered by Mr.A the company shall pay service charges. What will be the service tax implication in such arrangement. Request your valuable /expert suggestions in this regard.

[Mahir S]

Sir,

It appears no service tax for such services.

[Ganeshan Kalyani]

Pl give some supportive reason.

[YAGAY andSUN]

Please check Mega Exemption Notification and Negative list read with Service Tax Education Guide. Further, you may also seek advance ruling on this matter.

AI Summary

Service tax applicability on poultry farming - tending hens for egg supply appears not taxable; check exemptions or seek advance ruling. Arrangement: company supplies hens to an individual who rears them and returns eggs, receiving service charges. Discussion indicates service tax appears not leviable on this activity and advises checking the Mega Exemption Notification and Negative List or seeking an advance ruling for authoritative clarity.