Hi,
I have one doubt regarding the applicability of Negative list.
The instance is like this .
X Ltd is a company which owns a certain immovable property(vacant Land) in one area.
Beside that vacant land there on one Hotel run by another company called Y hotels Ltd.
The X Ltd and Y hotel ltd entered in to agreement where in X ltd permitted to Y ltd to use vacant land on lease basis .
consideration is monthly basis.
Actually Y Ltd in the leased land which is in front of Hotel wants to develop and maintain garden ,
And whenever X ltd wants the land back it will be returned.
Now my query is the leasing of vacant land for developing and maintaining the garden by Y ltd can be considered as exempt service to include in negative list .i.e whether it can be considered that letting land for gardening is service relating agriculture ?
I am referring following provision of Negative list. Sec 66D:
"(d) services relating to agriculture by way of—
agricultural produce;
Please share your opinion.
CAclubindia
