The Authority for Advance Ruling (AAR), Karnataka held that Agricultural Extension Services for tree-based agriculture to farmers of Cauvery River Basin is exempted under Entry No 57 of Notification No 9/ 2017- Integrated Tax Rate.
The applicant, M/s Avani Infosoft Pvt Limited under the service contract supra, will appoint Mara Mitras who are Agriculture Extension Workers (AEW) for providing agricultural extension services, including but not limited to farmers’ education and training with regard to Agroforestry by applying scientific research and knowledge.
Isha Outreach trains Mara Mitras, who uses a specially curated state-of-the-art Information Technology platform through which they disseminate technical and scientific information on how to grow timber, horticulture, and sericulture trees on their land. Isha Outreach has conducted research on scientific ways of conducting Agroforestry to effectively plant/cultivate and to reap maximum benefits from the same.
The applicant, quoting the definition of “agriculture extension” under para 2(C) of Notification No.9/2017-Integrated Tax (Rate), contends that the services being / to be provided by them, to M/s Isha Outreach, under the service contract are covered under the “agriculture extension services”, under SAC 9986 and hence the said services are exempted in terms of entry No.57 of the Notification No.9 / 2017-Integrated Tax (Rate) dated 28.06.2017.
A Coram consisting of M.P. Ravi Prasad, Additional Commissioner of Commercial Taxes, and T. Kiran Reddy, Additional Commissioner of Customs and Indirect Taxes observed that “services being provided by the applicant as contained in annexure 1 to the service contract between the applicant and M/s Isha Outreach are covered under “agricultural extension services” and hence are exempted in terms of entry no.57 of Notification No.9/2017- Integrated Tax (Rate) dated 28.06.2017.
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