Service tax query

Harshita (CA FINAL STUDENT) (116 Points)

18 July 2012

SIRs,

FACT 1 : WE ARE SERVICE PROVIDERS PROVIDING WAREHOUSING AND STORAGE SERVICE OF AGRI COMMODITIES AND ALSO PROVIDING LAB TESTING SERVICE FOR THE SAME...

AS ALL THE AGRI COMMODITIES EXCEPT PROCESSED COMMODITIES (i.e. GUAR GUM, COCUD) ARE EXEMPT FROM SERVICE TAX AS PER SERVICE TAX RULE:

“Storage and warehousing” includes storage and warehousing services for goods

including liquids and gases but does not include any service provided for storage of

agricultural produce or any service provided by a cold storage.

FACT 2 : AND OUR GROSS RECEIPT FROM TAXABLE SERVICE DOESNT EXCEED RUPPES TEN LACS LIMIT :

AND AS PER SERVICE TAX RULE :

“aggregate value not exceeding *ten lakh rupees means the sum total of first

consecutive payments received during a financial year towards the gross amount, as

prescribed under section 67 of the said Finance Act, charged by the service provider

towards taxable services till the aggregate amount of such payments is equal to ten

lakh rupees but does not include payments received towards such gross amount which

are exempt from whole of service tax leviable thereon under section 66 of the said

Finance Act under any other notification.

FACT 3 : WE ARE CHARGING AS WELL AS DEPOSITING SERVICE TAX AMOUNT OF WAREHOUSING RENT TOWARDS GUAR GUM AND PROCESSED COMMODITIES INSTEAD OF THE ABOVE FACTS THAT WE ARE IN LIMIT OF SSI EXEMPTION AS GROSS RECEIPTS OF TAXABLE SERVICE NOT EXCEEDING RS. TEN LACS..

WE ARE ALSO CHARGING (HAVE NOT DEPOSITED) SERVICE TAX ON LAB TESTING CHARGES...

QUERY :

NOW THE QUESTION IS :

WHETHER WE ARE LIABLE TO CHARGE AND PAY SERVICE TAX ON WAREHOUSING SERVICE OR WE ARE ELIGIBLE FOR SSI EXEMPTION NOTE : WE HAVE DEPOSITED SERV ICE TAX FOR APR, MAY AND JUNE MONTH 2012 IN CURRENT YEAR..

WHETHER WE ARE LIABLE TO CHARGE AND PAY SERVICE TAX ON LAB TESTING FEES ALTHOUGH WE ARE IN POSITION TO AVAIL SSI EXEMPTION

PLEASE SOLVE THE QUERY