SERVICE TAX ON RENT PAID TO COLD STORAGE

[pradip patwardhan]

Dear All,

Kindly advice me, if one pvt ltd company paying rent to one cold storage (owned by partnership firm) for storage of processed fish which has been using in export sale only.The said rent amount is more than 10 lakhs in one F.Y. Whether this activity falls under service tax. and who would be liable to pay service tax - service provider or receiver?

Please reply your valuable suggestion. 

 

 

[YAGAY andSUN]

Service provider will charge you the service tax in the invoice/bill issued.  You would have to pay the service tax to service provider and since the product is being exported you can claim the service tax refund under Notification No. 41/2012-ST

[pradip patwardhan]

Thank you so much for your reply. But please say that under which category of service this cold storage rent service will falls? and is there any abatement? .. Thank You.

 

[YAGAY andSUN]

Renting of immovable property services.  There is no abatement availabe to this service.  But property tax can be deducted as per the provisions of service tax laws.

AI Summary

Renting of immovable property services: service provider charges service tax; recipient may claim export-related refund. Rent payments to a cold storage for storage of exported processed fish are classified as renting of immovable property services, with the service provider required to charge service tax on the invoice and the recipient liable to pay it; no abatement applies, but property tax may be deductible in the taxable value, and the recipient can pursue an export-related refund of the service tax.