SERVICE TAX APPLICABLE ON HORTICULTURE CONTACT OR NOT

[BIBHUTI PATTANAIK]

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

[MUKUND THAKKAR]

sir,

please check how much payment you had made for such services. if less than 10lakhs in one FY need not to worry.

[KASTURI SETHI]

It is debatable issue as horticulture is part of agriculture. Agriculture activity is exempt. Maintenance of lawn and grass cutting is taxable under cleaning service. It is my opinion. If u cross turnover of ₹ 10 lakhs on account of maintenance and lawn and grass cutting u should pay service tax.

[KASTURI SETHI]

Horticulture is out of definition of Agriculture. It is taxable and classified under the category of "Other Than Negative Services".

AI Summary

Service tax applicability on horticulture: taxable when services fall outside the agriculture exemption and are classed as maintenance or cleaning. Whether service tax applies to horticulture and lawn maintenance hinges on characterisation: services genuinely qualifying as agricultural activity are exempt under the agriculture exemption, whereas routine lawn and grass upkeep has been treated as taxable, often classified as cleaning services or as other than negative services; applicability further depends on the provider's turnover exceeding the statutory threshold.