Warehousing of agriculture produce

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vipul (Querist)
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06 January 2016 Ram lets warehouse to State Warehouse Corporation and thereafter SWC sublets the warehouse to Farmer Shyam for storage of Agricultural Produce.

Ram --> State Warehouse Corporation --> Shyam

Whether Ram is liable to charge service tax from RSWC? Would Ram get exemption as per Section 66(D)(d)(v), “loading, unloading, packing, storage or warehousing of agricultural produce”.

Actually we want to know that whether SWC would get exemption or both.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 January 2016 Both get exemption as it is let out for warehousing of agricultural produce.

vipul

vipul (Querist)
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06 January 2016 Thanks for your reply.
But sir our client is in receipt of notice from department stating that it is renting of immovable property & no exemption allowed. So how we can satisfy the honour of commissioner.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 January 2016 Reply to the notice that renting is for warehousing of agricultural produce exempted from service tax.

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