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

Taxability of tree plantation services: horticulture treated as taxable service; service provider liable, reverse charge inapplicable.
Tree plantation by a government authority to a business entity constitutes a taxable service categorized as horticulture, which falls outside the legal definition of agriculture and is not listed among exempted services or the Negative List; consequently it is subject to service tax. The specific reverse charge notification for services by government or local authorities does not cover this horticulture service, so reverse charge is inapplicable and the service provider must pay the service tax.