Applicability of service tax for lease on godown

This query is : Resolved

akhil (Querist)
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27 December 2013 we have godown which is given as a lease to a company which stores corn as it's rawmaterial.The company further uses this corn for the production of animal feed on it's own.As a lessor will I get exemption from service tax ? I also want to know whether it alters essential characteristics or not?

Annu Agarwal

Annu Agarwal (Expert)
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28 December 2013 The leasing service provided by you is covered under Renting of Immovable property.Renting of immovable property is the essential character of the service.You can avail the SSI exemption if the lease rent is below 10 lakhs for the year.
As per Negative list Renting of agricultural machine or vacant land is exempt.Inthis case there is no vacant land but a godown.So service tax liabiity is there.