STORAGE AND WAREHOUSING SERVICE

Date of Introduction :

16th August, 2002 (Notification No.8/2002ST dated 01.08.2002)

Definition :

Storage and Warehousing includes storage and warehousing services for goods including liquids and gases but does not include any services provided for storage of agricultural products or any services provided by a cold storage.
(Section 65(87) of Chapter V of Finance Act, 1994)

Taxable Service :

Any service provided to a person by a storage or warehouse keeper in relation to storage and warehousing of goods.
(Section 65(90)(zza) of Finance Act, 1994)

Scope of the Service :

Storage and warehousing service for all kind of goods are provided by public warehouses, private warehouses, by agencies such as Central Warehousing Corporation, Airport Authority, Railways, Inland Container Depots, Container Freight Stations, storage godown and tankers operated by private individuals etc. The storage and warehousing service provider normally makes arrangement for space to keep the goods, loading, unloading and stacking of goodsin the storage area, keep inventory of goods, makes security arrangements and provide insurance cover etc. (Board’s F.No.B11/1/2002-TRU dated 01.08.2002)

Value of Taxable Service:

The gross amount charged by the service provider for such services rendered by him.
(Section 67 of Finance Act, 1994)

Who is responsible to pay Service Tax:

The service provider i.e. Storage and Warehousing provider is responsible for payment of Service Tax.
 

Exemption & Exclusion :

Cloak room services for passengers’ luggage at railway stations, bus stations etc. are do not come within the purview of storage and warehousing service.
(Board’s F.No.B11/1/2002-TRU dated 01.08.2002)
 

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