Service Tax on Horticulture Activities

[Guest]

Dear Sir,

Please explain service tax on Horticulture activities.

We provide a contract to party for horticulture activities, They will maintain all green plants.

Please explain.

Thanks & Regards,

Sanjay Vasava

[DR.MARIAPPAN GOVINDARAJAN]

What are the activities to be undergone by you? Mega exemptions gives exemption to some activities relating to agriculture. Please go through the same.

[Guest]

Dear Sir,

They are doing plantation/cleaning/water sprinkling/paring and other.

Please suggest, Which service tax category under covered horticulture work??

Thanks & Regards,

Sanjay Vasava

[DR.MARIAPPAN GOVINDARAJAN]

The normal provisions of service tax act and rules will be applicable in your case.

[Rajagopalan Ranganathan]

Sir,

Horticultural services provided by a person to another person for consideration is not under Negative list or under Exemption Notification No. 25/2012-ST dated 20.6.2012 as amended. The service is to be treated as non-negative list services and service tax is payable at normal rate of 15%.

[YAGAY andSUN]

If such activities are being done then CENVAT credit is available as this is the requirement of Environmental Laws.

Gardening service

In ‘Sterlite Industries India Limited V. Commissioner of Central Excise, Madurai’ – 2015 (9) TMI 1399 - CESTAT CHENNAI the Tribunal held that the maintenance of plantation in the factory to prevent air pollution being necessity of law, CENVAT credit only on that output be allowed. If there is any maintenance of garden in the office premises that should not be allowed.

[Ganeshan Kalyani]

The service provider will charge service tax on invoice provided his SSI limit exceeds.

[YAGAY andSUN]

Above services would fall under the taxable service of Gardening Services.

[Ganeshan Kalyani]

Gardening service does not appear in 119 service list defined . Hence would fall under other taxable service.

[Parth Bhatt]

http://www.cbec.gov.in/htdocs-servicetax/EducationGuide.pdf

On 45th page it suggests that Horticulture activity is agriculture activity. Experts may throw more light on this. It seemed contradicting in ds education guide.

AI Summary

Taxability of horticulture services: gardening contracts treated as taxable services, with input credit and small-supplier conditions applying. Horticulture and gardening services provided for consideration are taxable services not covered by the negative list or the cited exemption; they are treated as Gardening Service or Other Taxable Service and service tax must be charged subject to small provider thresholds. CENVAT credit is available where maintenance is required by environmental law (e.g., to prevent industrial pollution) but is not allowed for routine office garden maintenance. Some guidance materials suggest horticulture is agricultural, creating a noted inconsistency.