Finance Minister has clarified that Rice is not an agricultural produce, Central Warehousing Corporation (CWC) has clarified to its offices that now Service Tax is payable. The CWC is so careful that it has clarified that even in cases of construction of warehouses for storage of Agricultural produce where it is not known as to what commodity will be stored therein i.e. wheat, Rice or some other commodity. We are enclosing herewith following the following circulars issued by CWC to its staff related to Service Tax on ‘RICE’ storage, cargo handling, transport Charge and on construction of warehouses for rice storage. In this circulars CWC has accepted the levy of service tax on Service Tax on ‘RICE’ storage, cargo handling, transport Charge and on construction of warehouses for rice storage.
CWC Circular No 63, Dated: October 11 2012
It is not correct that transportation of rice attracts service tax in view of the exemption conatined in Notification No.12/2012-ST(Sl.No.21). It is true that the word’rice’ is not mentioned in the notification, but food grains is mentioned. Food grains means rice in addition to wheat and other garins, as per the definition of food grains in National Food Security Act,2013 .