The problem caused by anti nutritional effect of tannin in food, feed and beverage industries has brought about several significant loses. Gallic acid, a product of tannase hydrolysis, has been recently used in various industrial applications. This investigation was aimed to develop a process technology for producing microbial tannase using agro waste and subsequent application of the tannase in production of gallic acid. Microorganisms were isolated from soil rich in tannin and screened for tannase production. Tannase producers obtained were further used for tannase production by solid state fermentation. Assay of gallic acid content and pH of the crude extract were also done. Among the microorganisms isolated from tannin rich soil, three fungi, Aspergillus. niger, Aspergilus flavipes and Geomyces pannorus, indicated zones of tannin hydrolysis of 39, 19.5 and 10 mm. The activities of tannase produced by A. niger, A. flavipes and Geomyces pannorus were 42787.3, 30030.8 and 32210.1 µmol/L respectively. pH of crude tannase were 4.18, 6.80 and 4.11 for A. niger, A. flavipes and Geomyces pannorus respectively. Gallic acid produced from A. niger, and A. flavipes hydrolysis gave 8×10-4 dm3 and 7.1×10-4 dm3 respectively. The three fungi isolates here studied are potential gallic acid and tannase producers.