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Is this agriculture income?

kiran (accounts manager) (263 Points)

01 December 2020

A manufacturing company has garden, and get proceeds from selling fruits etc. can it be considered as agriculture income.

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6 Replies

ayusmita (Tax consultant) (5890 Points)
Replied 01 December 2020

Yes it can

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Shivam RC (Student) (23683 Points)
Replied 01 December 2020

Yes it can be considered as Agricultural Income and accordingly you can claim exemption U/s 10(1) of the Income Tax Act 1961.

kiran (accounts manager) (263 Points)
Replied 01 December 2020

Thanks a lot.

KRISHNA SHAH (27 Points)
Replied 03 December 2020

You are posting this question under GST app so i ma going to answer this question of yours as per CGST Act, 2017
As per section 2(7) of CGST Act, 2017 the term agriculturist considers only INDIVIDUAL/HUF.
So under GST it won't be considered as agriculture income.

kiran (accounts manager) (263 Points)
Replied 03 December 2020

Then is this taxable in gst? or not.

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KRISHNA SHAH (27 Points)
Replied 04 December 2020

The above income is not agricultural income, however supply of fruits and vegetables is exempted under CGSTAct,2017. So if you are a registered person supply fruits and vegetables you shall not collect tax (charge gst) i.e. it is not taxable.