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Is this agriculture income?

kiran (accounts manager) (262 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) (5885 Points)
Replied 01 December 2020

Yes it can

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) (262 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) (262 Points)
Replied 03 December 2020

Then is this taxable in gst? or not.

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.