Whether ST applicable on Tree Plantation service by Govt.Authority to Business Entity??

[hardik thacker]

Sir,

My organisation had entered into agreement with one of the Govt. organisation (I.E GUJARAT ECOLOGICAL COMISSION) for 'PLANTATION FOR TREES in certain hectares of area for getting 'ENVIRONMENT CLEARANCE'

Whether above activity is 'SERVICE'??

Whether amount paid to Gujarat Ecological Commission is liable for Service Tax under Reverse Charge mechanism ??

AI Summary

Tree Plantation by Business Entity Deemed Taxable Service, Not Exempt as Agricultural Activity Under Reverse Charge Mechanism A business entity entered into an agreement with a government authority for tree plantation to obtain environmental clearance, raising questions about service tax liability. The discussion centered on whether this activity qualifies as a service and if it is subject to service tax under the Reverse Charge Mechanism. It was concluded that tree plantation is considered a service, falling under horticulture, which is not exempt from service tax. It does not qualify as an agricultural activity, thus not eligible for exemption or benefits under the Reverse Charge Mechanism, requiring the service provider to pay the full service tax.