Liability of service tax on warehousing

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1 Replies

Rakesh Bandal (Self Employed and Agriculture) (1349 Points)
Replied 23 August 2018

In first case i.e. leased to B and further B uses it for agricultural purpose

Specifically it falls under exemption list of Service Tax rules, as 'A' had also used it for agricultural purpose but only through an intermediary, it will not be the case that 'A' has used warehouse for business/ other than agricultural purpose

In second Case sharing of revenue

picture is very much clear that both the parties had carried out business jointly

Answer is based on intention of Act (for logic purpose you can also refer Depreciation allowed as per IT Act 1961, on leased vehicles through intermediaries) / if any specific case law is found will be forwarded to you