Service Tax on Grass Cutting / Vegetatin Clearance Services

[BS Raja Sekhar]

We are a central govt organisation with about 1000 acres of govt land. We are outsourcing services of hiring of labour for grass cutting / vegetation clearance services. We will give the contract to authroised manpower supply vendor registered with labour commission, service tax, EPF & ESI through tendering only. The contract amount will be 20 - 40 lakhs per annum for clearing vegetation from this govt land. Does this service come under service tax ambit or NOT?? Kindly mention any service tax rule or GoI letter or any authority as it is required for making the contract. Thanks for this kind of valuable services

AI Summary

Debate on Service Tax for Outsourced Grass Cutting Services: Exemption Eligibility and Impact of Contract Terms Examined. A central government organization inquires about the applicability of service tax on outsourced grass cutting and vegetation clearance services. The organization plans to contract a registered manpower supply vendor for this purpose. Responses highlight differing views: one suggests exemption under notification 25/2012-ST for certain government services, while others argue that the organization may not qualify as a government entity, affecting exemption eligibility. The discussion also considers whether the service falls under the 'Negative List' or 'Manpower Supply Agency,' impacting tax liability. The importance of contract terms and the organization's status are emphasized for determining tax obligations.