Servicetax on Cold Storage

[Haresh Raithatha]

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.

AI Summary

Service tax on storage: agricultural produce storage exempt, non-agricultural storage taxable; credit reversal obligations apply.
Service tax on cold storage turns on whether stored goods are agricultural produce: storage and warehousing of agricultural produce fall under the negative list and are not taxable, including cold storage used solely for such produce; non agricultural storage and storage of manufactured products are taxable. Rice and cotton enjoy specific exemption treatment under the Mega Exemption framework; goods processed beyond primary market preparation (e.g., ginned cotton) are excluded from the agricultural exemption. Providers offering both taxable and exempt services must apply Cenvat Credit Rules, including credit reversal.