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Declared services....

CA. Jiya (Sr. Executive) (64 Points)

03 July 2012

Dear all.... i have two queries.. pls suggest....

1) Whether Gardening and security contracts are considered as taxable services?

if yes under which service these contracts are taxable....?

2) Whether Service tax applicable on the reimbursement of expenditure?

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15 Replies

Ashish (CA) (166 Points)
Replied 03 July 2012

Yes

Landscaping and Lawn Care Services:

Taxable Services

Planting, transplanting, relocating and removing indoor or outdoor plants
Identifying, preventing or curing plant diseases
Pruning, bracing, spraying, fertilizing and watering plants
Planting, mowing, trimming and edging grass or other ground cover
Planting and maintaining flower gardens
Trimming, spraying, and maintaining trees

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CA. Jiya (Sr. Executive) (64 Points)
Replied 03 July 2012

Thanks Ashish... can u pls give refrence where u seen these services... and likewise gardening is there seprate service for security-guard contract... pls give some refrence dear....

Ashish (CA) (166 Points)
Replied 03 July 2012

Check the link:

https://www.servicetax.gov.in/st-profiles/interior-decortr.pdf

Ashish (CA) (166 Points)
Replied 03 July 2012

here the otherone:

https://www.servicetax.gov.in/st-profiles/security-agency.pdf

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Ankit (Professional) (82 Points)
Replied 03 July 2012

But now a days government has given a negative list of services which are not taxable . So should we not refer to that instead.

How come reibmursement of expenditure is a Service ?

I am a bit unclear on this.

Thanks

Ankit

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Ashish (CA) (166 Points)
Replied 03 July 2012

Here is Negative list of service tax: https://taxguru.in/service-tax/service-tax-negative-list-services.html & https://www.cbec.gov.in/draft-circ/taxservices-negativelst.pdf No where Gardening & security-guard is in Negative list. So, they are taxable.

Ajit kumar Dubey (Taxation Manager) (637 Points)
Replied 03 July 2012

Upto now only the principal changes has been intimated, Dept. is yet to come up with the changes in procedures. Now as far as reimbursement is concerned, with reference to Rule 5 of the Service tax (Determination of Value) Rules, 2006, the tax implications are as same as was earlier. Reimbursements are not liable to service tax. Now when there is no existence of Section 65, then the question of classification does not arise. As per the amended law, the onus is that whether a particular activity is a service or not. In present case the activities which you have specified is a service and liable to service tax. Also as there is no abatement and no exemption provided on the services specified by you above, the earlier practice should be continued in future, till the Dept comes up with new set of regulations.

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CA. Jiya (Sr. Executive) (64 Points)
Replied 03 July 2012

Ajit Sir,

Can i say now no service categories? if the activity is service simply apply service tax...we need not see under which service this service is taxable? pls clearify i am really confused...... whether we have to takerefrence of service tax categories and charge particular service under that category or else simply apply service tax...?

this thing i know as the rate of service tax is 12% for all so it doesnt matter...but still like reverse mechanism given...so if we know that particular service falls under which category i.e. whether under work contract or GTA ... then only we can apply the given proportion...

Pls suggest....

Ajit kumar Dubey (Taxation Manager) (637 Points)
Replied 03 July 2012

Firstly, let me make this clear that there are no classification of services, except for the services specified in the abatement notification, mega notification and negative list. Also as per the rules of interpretation whenever any specific is provided anywhere in an act or rules, then the said provisions will apply, or else general rules applies. Hence, for the purpose of availing abatement, exemptions and partial reverse charge mechanism there are a list of selected services but for the purpose of charging service tax there are no classifications. Hope it clears your doubt

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CA. Jiya (Sr. Executive) (64 Points)
Replied 03 July 2012

Thank you Ajit sir.....

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CA. Jiya (Sr. Executive) (64 Points)
Replied 03 July 2012

Ajit Sir.....

i have posted one more query on Manpower recruitment and supply agency service... pls suggest...

we are recipient of manpower supply service...

as now its covered by reverse mechanism we are also reuire to pay service tax..

1) Are we require to take seprate regist for it?

2)how much cenvat credit we can avail?

3)When we need to pay service tax.. at the time of bill booking or at the time of payment to party(Advance)

CA Darshak Shah (Practicing CA) (1889 Points)
Replied 03 July 2012

I would like to know about service tax on hotels and restaurants...

Please guide me based on latest amendments.

Also tell me regarding abatement % on same services..

Please help..

Regards

Darshak shah

Ajit kumar Dubey (Taxation Manager) (637 Points)
Replied 03 July 2012

Services provided in relation to serving of food or beverages by a restaurant, eating joint or a mess, other than those having (i) the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year, and (ii) a licence to serve alcoholic beverages, will not be liable to service tax. Service tax has to be charged on 70% of the value of the bill if the restaurant has the facility of providing air condition or a license to serve alcoholic drinks in the restaurants.

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