Service Tax On FTWZ

[Asked by Guest]

A Bill raise for additional storage charges for Party for use additional days . Storage at Free Trade and Warehousing Zone. Service Tax to be charges on bill raise for storage on FTWZ

[Rajagopalan Ranganathan]

Sir,

Please explain what is the normal period of storage. Whether any charges are payable for normal period of storage. If for normal period you are liable to pay charges, then that itself is chargeable to service tax. Similarly if additional charges are demanded for storage of the goods for additional days it is also liable to service tax.

AI Summary

Service tax on storage charges: fees for normal and additional storage periods are taxable when a charge is levied.
Charges for storage at a Free Trade and Warehousing Zone are liable to service tax when a fee is payable: fees for the normal storage period are taxable, and any additional charges for extended storage periods are likewise chargeable to service tax.