Doubt about cold storage... negative list...

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bhavik mehta

bhavik mehta (Querist)

13 July 2012 hello sir,
can you guide me about applicability of service tax to COLD STORAGE , as per negative list??

RENGARAJ R.K

RENGARAJ R.K (Expert)

13 July 2012 In the negative list, storage and warehousing of agricultural produce services are included. Therefore, cold storage of agriculture produce is also exempted from the levy of service tax. The negative list states 'loading, unloading, packing, storage and warehousing of agricultural produce;

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bhavik mehta

bhavik mehta (Querist)

14 July 2012 sir ,

can you also tell what does the defination of agriculture includes ??

RENGARAJ R.K

RENGARAJ R.K (Expert)

16 July 2012 The following are the explanation given by the Service Tax Guide about agricultural produce..
4.1 What is the meaning of 'agriculture'?
'Agriculture' has been defined in the Act as cultivation of plants and rearing or breeding of animals and other species of life forms for foods, fibre, fuel, raw materials or other similar products but does not include rearing of horses.

What is the meaning of agricultural produce?

Agricultural produce has also been defined in section 65B of the Act which means any produce of agriculture on which either no processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market. It also includes specified processes in the definition like tending, pruning, grading, sorting etc. which may be carried out at the farm or elsewhere as long as they do not alter the essential characteristics.
4.4.4 Would plantation crops like rubber, tea or coffee be also covered under agricultural produce?
Yes. Such plantation crops are also covered under agricultural produce.

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bhavik mehta

bhavik mehta (Querist)

24 July 2012 If Garlic powder is kept in cold storage , is service tax applicable??

RENGARAJ R.K

RENGARAJ R.K (Expert)

25 July 2012 Further process of garlic in to powder will not cover under the agriculture produce explanation received from the department, in my opinion.

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bhavik mehta

bhavik mehta (Querist)

25 July 2012 sir, may i have your contact no. or any other way to communicate in caclub or else?? , i also wanna need ur some advice for future plan as i just clear my C.A. Final.. so..

thanks sir..

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