Renting of vacant land to various farmer

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krivam shah (Querist)
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10 September 2020 renting of vacant land to various farmer for warehousing farmer goods is liable to service tax ? it is exempted services for the year from f.y.2014-15 to f.y.2017-18 (till GST apply) & what is the item covered under the definition of agricultaral produce. Waiting for your favourable response.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 September 2020 It's exempted service.
Agricultural produce has also been defined in section 65B of the Act which means any produce of agriculture on which either no processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market. It also includes specified processes in the definition like tending, pruning, grading, sorting etc. which may be carried out at the farm or elsewhere as long as they do not alter the essential characteristics.