renting of Godowns to for storage of wheat & Rice

[satbir singhwahi]

Godowns are rented to Punjab Warehousing Corporation , Wheat & Rice are store there.Whether exempt from service tax , by clause 66D(d)Services relating to agriculture or agriculture produce by way of v) Ware housing of agriculture produce.

[Mahir S]

Yes, exemption from Service tax is available.under section 66D(d) (iv).

[sanjeev bajaj]

In respect of wheat, the renting of godown falls under the negative list as the wheat falls under the definition of agricultural produce. Whereas Rice , in my opinion,, does not fall under the definition of Agricultural Produce as it amounts to manufacture as decided by various judgements and different from the paddy and activity is not performed by the cultivator.

 

AI Summary

Warehousing exemption for agricultural produce may cover wheat storage, but rice storage may fall outside exemption. Advisories differ on exemption for renting godowns: one view treats warehousing of agricultural produce as exempt from service tax; an alternative view accepts exemption for wheat as agricultural produce but contends rice is a manufactured product distinct from paddy and so its storage may not qualify for the agricultural warehousing exemption.