service tax on cold storages

[prasadu naladala]

If a private limited company owns a cold storage enguaged in agricultural products.Is service tax applicable or exempted?

AI Summary

Service Tax Exemption for Cold Storage: Only Market Preparation for Primary Market Exempt, Retail Preparation Not Exempt. A query was raised regarding the applicability of service tax on a cold storage facility owned by a private limited company engaged in agricultural products. The response clarified that service tax is exempt for processes like cooling or bulk packaging that do not alter the essential characteristics of agricultural produce but make it marketable for the primary market. However, processes that prepare agricultural products for the retail market are not exempt. The applicability of service tax depends on the purpose of the services utilized in relation to agricultural products.