Applicability of service tax

Services relating to agriculture and agriculture produce by way of loading, unloading, packing, storage and warehousing of agriculture produce is covered in negative list entry under Sec 66D (d) (v).

Further, Agriculture produce is defined under Sec 65B (5). It means any produce of agriculture on which either no further 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.

If the product stored in the warehouse meets the above criteria, then it could be covered under negative list. Then ST levy fails. Otherwise ST needs to be discharged.