One of my client is levying charges on cold storage, which he provides his customers for keeping their material. Does the charges levied by him amounts to rent. If yes, is he liable to get himself registered under Service Tax.
Is the position different if he gives the cold storage to one person only on fixed monthly rent.
06 August 2010
In both the cases, the services provided will come under "renting of Immovable property" as per explanation 2 to section 65(90a) of the Service tax Act.
06 August 2010
UNDER STORAGE AND WAREHOUSING SERVICES, COLD STORAGES ARE EXCLUDED UNDER SECTION 65(102). AND AS FAR AS RENTING OF IMMOVABLE PROPERTIES IS CONCERNED, IN MY OPINION, COLD STORAGES ARE NOT COVERED UNDER THIS SERVICE AS IN COLD STORAGES GOODS ARE PRESERVED UNDER PROVIDING SPECIFIC TEMP. REQUIRED AND IT IS NOT RENTING OF SPACE ONLY.
07 August 2010
I think explanation 2 as mentioned above hints about the situation like office space provided in the big commercial concern and cold storage are out of service tax net.
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