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

Debate on Service Tax Exemption for Warehousing: Wheat and Rice Under Section 66D(d)(iv) Analyzed for Agricultural Produce Status. A query was raised regarding the applicability of service tax on renting godowns to the Punjab Warehousing Corporation for storing wheat and rice. The discussion focused on whether such services are exempt under clause 66D(d) for warehousing agricultural produce. One response affirmed the exemption for both wheat and rice under section 66D(d)(iv). Another response agreed on the exemption for wheat, classifying it as agricultural produce, but argued that rice does not qualify as such due to its manufacturing process, distinguishing it from paddy and not performed by the cultivator.