renting of Godowns to for storage of wheat & Rice, Service Tax

[satbir singh wahi]

Godowns are rented to Punjab Warehousing Corporation , Wheat & Rice are store there.Whether exempt from service tax , by clause 66D(d)Services relating to agriculture or agriculture produce by way of v) Ware housing of agriculture produce.

Posts / Replies

[Naveed S]

Yes, exemption from Service tax is available.under section 66D(d) (iv).

[sanjeev bajaj]

In respect of wheat, the renting of godown falls under the negative list as the wheat falls under the definition of agricultural produce. Whereas Rice , in my opinion,, does not fall under the definition of Agricultural Produce as it amounts to manufacture as decided by various judgements and different from the paddy and activity is not performed by the cultivator.