Service tax on rent

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WE ARE PAYING RENT FOR PREMISES (POULTRY SHED) FOR GROWING POULTRY BIRDS RS.100000/- P.M TO INDIVIDUAL OWNER . ACCORDING TO MY INFORMATION REARING OF BIRD IS FALLING UNDER AGRICULTURAL ACTIVITY I.E ANIMAL HUSBANDRY .AGRICULTURAL ACTIVITY IS FALLING UNDER NEGATIVE LIST..IN THIS REGARD MY QUESTION IS CAN WE ARE LIABLE TO PAY SERVICE TAX ON RENT PAID TO INDIVIDUAL OWNER .PLEASE GUIDE .THIS MATTER IS MOST URGENT. REGARDS RAJKUMAR GUTTI
Replies (2)

Hello,

Poultry farming is not an agriculture activity. Service tax is applicable.

For agricultue income Land cultivation is must:- Some measure of cultivation is necessary for land to have been used for agricultural purposes. The ambit of agriculture covers all land produce like grain, fruits, tea, coffee, spices, commercial crops, plantations, groves, and grasslands. However, the breeding of livestock, aqua culture, dairy farming, and poultry farming on agricultural land cannot be construed as agricultural operations.

Poultry farming, Dairy farming & Bee keeping are business income not agriculture income.​

DEAR SIR, BUT REARING OF POULTRY BIRDS ARE COME IN " ANIMAL HUSBANDRY"

AND DEFINITION OF AGRICULTURE IN SERVICE TAX LAWS COVERS " ANIMAL HUSBENDRY" AGRICULTURE & AGRICULTURAL SERVICES ARE IN THE NEGATIVE LIST. RENT IS NOT IN A REVERSE CHARGE MECHANISUM LIST. WE ARE A SERVICES RECEIVERS. SO, SEEING ABOVE CIRCUMSTANCES HOW WE CAN LIABLE TO PAY SERVICE TAX ON RENT PAID FOR POULTRY SHED.

YOU ARE REQUESTED TO EXPLAIN AGAIN SIR,

THANKING YOU,

REGARDS

RAJKUMAR GUTTI

 

 


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