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An agriculturist 'to the extent of supply of produce out of cultivation of land' is:
ARequired to register at Rs 40 lakh threshold
BNOT required to register (Sec 23(1)(b))
CRequired to register at Rs 20 lakh threshold
DRequired to register only if exporting
Answer & Solution
Correct answer: B. NOT required to register (Sec 23(1)(b))
1. Sec 23(1)(b) — an agriculturist (Sec 2(7) — individual / HUF) is not required to register to the extent of supply of produce out of cultivation of land.
2. If the agriculturist also supplies non-agricultural goods/services beyond the cultivation, those supplies are subject to normal thresholds.
3. Companies, LLPs etc. doing agriculture are NOT 'agriculturists' under Sec 2(7) — limited to individuals/HUFs.
_Source: ICAI BoS CA Final Paper 8, Ch 7 "Registration", §Sec 23(1)(b)_
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