Service tax on godown rent

This query is : Resolved

Report Abuse Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

17 August 2012 Please tell me. is service tax on Godown rent .and its limit

RENGARAJ R.K

RENGARAJ R.K (Expert)
Follow

17 August 2012 If the godown is used for commercial activities, then it is liable under Service tax. The rate of service tax is 12.36%. The limit for applying RC is 9 lacs, and for remitting the service tax is 10 lacs. The service tax is collectable from the party.

If the godown is meant for storing agricultural commodities, then it will not attract Service tax.