warehouse rent is a part of Rishi Shipping.  94 taxmann.com 147 (AAR – GUJARAT)
What might be appropriateness of GST on capacity charges for putting away imported agri item in godowns.
The candidate has presented that they don’t have their own stockroom/godown space. They have involved something similar from Government/Private gatherings. As a piece of their administrations, they offer support of distribution center/space on lease to their clients, where they store imported rural wares.
Candidate submitted test duplicates of solicitations and portrayal of administration has been referenced as Godown Rent (SAC – 997212) and GST has been paid @ 18% (CGST 9% + SGST 9% or IGST 18%). Candidate didn’t submit anything towards its translation of law as well as realities to help that the Goods and Services Tax isn’t material to the aforementioned action completed by them.
3. Perception by AAR
There is a contrast between ‘capacity or warehousing’ administration and ‘leasing of capacity premises’ administration. ‘Capacity and Warehousing specialist organization’ ordinarily make game plan for space to keep the products, stacking, dumping and stacking of merchandise in the capacity region, keeps stock of merchandise, makes security courses of action and give protection cover and so forth For a situation where an individual just leases the capacity premises, he doesn’t offer any support like stacking/dumping, stacking, security and so on Simple leasing of space can’t be supposed to be in the idea of administration accommodated capacity or warehousing of products.
The candidate has submitted in the application that as a piece of their administrations, it offers support of stockroom/space on lease to their clients, where they (clients of candidate) store imported rural products. From the idea of administration given by the candidate, as portrayed in the application, unmistakably the candidate just lease the capacity premises. When the capacity premises is leased by the candidate to its clients, what utilize the client thinks about such premises doesn’t have any bearing on the idea of administration given by the candidate.
Administrations given by the candidate are classifiable as ‘Rental or renting administrations including own or rented non-private property’ (Service Accounting Code – 9972) leviable to Goods and Services Tax @ 18%.
There is an exceptionally fine contrast among leasing and warehousing. The distinction among leasing and warehousing has been clarified by CBEC in F. No. B11/1/2002-TRU, dated 1-8-2002, wherein it has been explained that
Capacity and warehousing administration for a wide range of products are given by open stockrooms, private distribution centers, by organizations, for example, the Central Ware Housing Corporation, Air Port Authorities, Railways, Inland Container Depots, Container Freight Stations, stockpiling godown and big haulers worked by private people and so forth The capacity and warehousing specialist co-op typically make plan for space to keep the merchandise, stacking, dumping and stacking of products in the capacity region, keeps stock of products, makes security courses of action and give protection cover and so on
5.It has been expressed that for some situation a capacity proprietor just leases the capacity premises. He doesn’t offer any assistance like stacking/dumping, stacking, security and so forth A point has been raised with regards to whether administration assessment would be leviable in such cases. It is explained that simple leasing of space can’t be supposed to be in the idea of administration accommodated capacity or warehousing of products. Fundamental test is whether the capacity manager accommodates security of merchandise, stacking, stacking/dumping of products in the capacity region.
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