Service tax Implication on Storage charges

[Balamurugan R]

Dear Sir,

We have paid Monthly cold storage charges to party, he was not charge any service tax, he is not Service tax

registered party,

Is it we need to pay the service tax to the Government for those storage charges,

Pls clarify,

AI Summary

Service Tax on Cold Storage: Providers Must Charge Tax; Agricultural Storage Exempt, Non-Agricultural Taxable. Verify Compliance. A query was raised regarding the obligation to pay service tax on cold storage charges when the service provider is not registered for service tax. Respondents clarified that the responsibility to charge and remit service tax primarily lies with the service provider, except in cases of reverse charge. Agricultural produce storage is generally exempt, while non-agricultural storage is taxable. Under the GST regime, service recipients may need to ensure service providers have paid taxes to claim credits. It was suggested that tax authorities should verify compliance rather than burdening service recipients with this responsibility.