One of My client Running a cold storage since 40 years. Please guide me in respect of chargeabality of Service tax on Cold storage activities for Agricutural as well as non Agri produce.
Whether Rice Cereals Jaggery Ginned Cotton copra etc are liable for charging of service tax .
Please give your valuable views.
Cold Storage Services for Agricultural Produce Exempt from Service Tax under Section 65(102); Non-Agricultural Subject to 14% Tax. A client operating a cold storage facility for 40 years seeks guidance on the applicability of service tax on storage activities for both agricultural and non-agricultural produce. It is clarified that cold storage services fall outside the scope of service tax under Section 65(102) of the Finance Act, 1994. Storage of rice, cereals, jaggery, and copra is generally exempt from service tax, whereas ginned cotton is not exempt. Agricultural produce storage is covered by the Negative List, and non-agricultural produce storage is subject to a 14% service tax. Compliance with cenvat credit rules is advised for mixed services. (AI Summary)
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