Service tax applicability!

Queries 3077 views 11 replies

Hi,

 

We have recieved a contract from the Govt. of Karnataka to plant trees in and around the City of Bangalore. In this case we are providing service to the Govt.

Questions: 1) Are we liable to pay service tax?

                     2) If the answer to above question is yes then under which head would this be chargeable?

 

Any help is appreciated.

 

Regards,

Roopesh

Replies (11)

Dear Roopeshkumar

the service ur providing is not liable to Service Tax & the said services Tree Plantation & Forestation is not covered U/s 65 of Service Tax Act.

 

thanks

Dear RoopeshKumar,

 

the service ur providing is not taxable under Service tax act.

this service of Tree plantation & Forestation is not covered U/S 65(taxable Services) of Service tax Act.

Dear Sir,

 

Thank you for your input. But i also had queried this with the Public Relations Officer of Service Tax Commissionerate, and he was of the opine that this would definately be chargeable and is not exempted. He asked me to take this under "Event Management" (more relevant) or "Business Support Services", but according to him this will be chargeable.

 

Advise,

Roopesh

Well department would never say NO to any services..... for them all the queries are from revenue point of view...... 

Moreover, if they commit that the said service is not taxable and if by any chance it is... they would be under deep sh*t... so for them all of your queries are taxable even if clear notification is provided to them. 

On the face of it, the service you are rendering  doesn't seem taxable.  Also the Departments contention that the said services falls under BSS or Event management..... is totally absurd. 

Planting of Trees ...... Business? or Event? 

Get a letter written from the entity whomsoever you've taken the contract with that the said activity is not taxable service. Else you shall recover service tax from them for the services rendered. 

Firstly, should've never gone to the department and moreover don't submit or disclose your firms name .
Secondly, Check your agreement with the contractor.
Third, Get the letter written from the contractor that the said activity doesn't attract service tax.
Fourth, always remember that the essense of the activities carried out by you doesn't get covered up under any of the sub-section 65(105). Hence, you're not attracted to any service tax. 

.

PLEASE GO THE FOLLOWING LINK

https://servicetax.gov.in/st-profiles-home.htm

YOU WILL FIND 119 TYPES OF SERVICE

CHECK YOUR REQUIRED ONE

TRUST YOUR EYES ONLY

.

Well,,,,,,,,,,,service tax for plantation of trees is chargeble.,,,,,,, bcz ur taking d consideration from  government ,,,if u r rendering d service without  any consideration,,,, it is not chargeble...........based on dis u can lookout in d services ...

@ Sai : I beg to differ from your opinion. True that the entity is providing Plantation Services, probably with / without any profit motive. However, they are rendering services for the State Govt. body which are formed under the constitution of India. Article 243W clearly states the duties for the states to be performed for the infrastructural development of the states, which in a way becomes statutory duty of the states. 



Also you can definitely argue of the ground that the scope of the services is limited to 119 services and non of the scope specifically covers the said activity.



However, I would have agreed to you under the scenario where the government is propsing Negative List which debars certain segement of service classes. Here we are working the Positive List Environment. 



Moreover, the Government is not going to bear the additional burden of Service Tax if demanded. Its like collecting Tax from State Government and paying it to Central Government. 



Hope this brings some light insight on the issue. 



Any further contention are welcomed. 



Regards, 

RR

In my opinion service u rendered is not covered in taxable service...

see sec 65..

The service ur providing is not liable to Service Tax & the said services Tree Plantation & Forestation is not covered U/s 65 of Service Tax Act.

I do agree with  Mr Rohan...

Thank you all very much for your time and for sharing your knowledge.

 

Have a wonderful day:)


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