Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Service tax on rent of godown/warehouse

Save Share

This query is : Resolved

psmann (Querist)
Follow

16 July 2013 DEAR ALL,

HI. I CONSTRUCTED A COVERED GODOWN UNDER P.E.G SCHEME 2008 (GUARANTEED HIRING FOR 7 YEARS). THE TENDER DOCUMENT ASKED FOR BIDS INCLUSIVE OF SERVICE TAX. OUR BID WAS SUCCESSFUL. WE COMPLETED THE GODOWN AND HANDED OVER TO THE GOVT. AGENCY. (PUNGRAIN..NODAL AGENCY OF F.C.I IN PUNJAB). AN AGREEMENT FOR 'LEASE ONLY' WAS EXECUTED FOR THE CONTRACT PERIOD OF 7 YEARS FOR STORAGE OF FOODGRAINS.

I'M GETTING MONTHLY RENT OF 2.3 LACS
ANNUAL TOTAL 27.66 LACS.

PLEASE TELL ME WHETHER MY PARTNERSHIP FIRM WILL HAVE TO PAY THE SERVICE TAX ON THIS RENT INCOME OR I SHALL GET THE BENEFIT FROM NEGATIVE LIST CLAUSES.....RENTING OF VACANT LAND WITH OR WITHOUT STRUCTURE...OR ....WAREHOUSING OF AGRI PRODUCE..ETC.

sivadas chettoor

sivadas chettoor (Expert)
Follow

16 July 2013 I am of the view that the service is entitled to get classified in the negative list since it is related to agri produce ie warehousing or storage of the same.

psmann

psmann (Querist)
Follow

16 July 2013 Thanks for your prompt reply. which clause should the rental income be covered under ?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now