Charges levied on renting of cold storage

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Girish Sharma (Querist)
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06 August 2010 Dear Sir,

One of my client is levying charges on cold storage, which he provides his customers for keeping their material. Does the charges levied by him amounts to rent. If yes, is he liable to get himself registered under Service Tax.

Is the position different if he gives the cold storage to one person only on fixed monthly rent.

Thanks

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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06 August 2010 In both the cases, the services provided will come under "renting of Immovable property" as per explanation 2 to section 65(90a) of the Service tax Act.

VINOD ARORA

VINOD ARORA (Expert)
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06 August 2010 In first case it will be chargeable under STORAGE AND WAREHOUSING SERVICE

In second case it would attract RENTING OF IMMOVABLE PROPERTY.

mohinder kansal

mohinder kansal (Expert)
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06 August 2010 UNDER STORAGE AND WAREHOUSING SERVICES, COLD STORAGES ARE EXCLUDED UNDER SECTION 65(102). AND AS FAR AS RENTING OF IMMOVABLE PROPERTIES IS CONCERNED, IN MY OPINION, COLD STORAGES ARE NOT COVERED UNDER THIS SERVICE AS IN COLD STORAGES GOODS ARE PRESERVED UNDER PROVIDING SPECIFIC TEMP. REQUIRED AND IT IS NOT RENTING OF SPACE ONLY.

MORE VIEWS ARE EXPECTED TO EXPLAIN THE ISSUE PL.

mohinder kansal

mohinder kansal (Expert)
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07 August 2010 I think explanation 2 as mentioned above hints about the situation like office space provided in the big commercial concern and cold storage are out of service tax net.

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