Sir,
I am working in a reputed power sector company and the co use to award contracts to horticulture and maintenance of lawns and grass cutting etc.No service tax was claimed and paid by the co on these.But now the Central Excise Dept has given a notice to the agency asking to me Service tax payment on the contracts.
My presumption is that these contracts are exempted or not from Service Tax.
I request to clearly of my contact is applicability of Ser.Tax on these nature of works urgently as Dept is pressurising the agency to remit the tax immediately.
with regards,
bibhuti pattanaik
Horticulture Contracts: Lawn Maintenance and Grass Cutting Taxable if Turnover Exceeds 10 Lakhs, Not Exempt as Agriculture. An individual working for a power sector company raised a query about the applicability of service tax on horticulture contracts, specifically for lawn maintenance and grass cutting, after receiving a notice from the Central Excise Department. One respondent suggested that if payments for such services are below 10 lakhs in a financial year, there is no need to worry. Another respondent noted that while agriculture activities are exempt from service tax, lawn maintenance and grass cutting are taxable under cleaning services if turnover exceeds 10 lakhs. They also clarified that horticulture is not considered agriculture and is taxable. (AI Summary)
TaxTMI 
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