Authorised service station basic exemption limit

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Sunil (Querist)

19 March 2013 Sir,

I'm a authorised two wheeler dealer in Shimoga. Assuming I have the basic exemption limit, I've not registered nor collected service tax.

Recently the department official called me and demanded that I pay the service tax from 1st invoice.

I came across a reply by a Mr R.V.Rao on the same issue on 19th October 2007 in your site.

Please clarify whether I have the basic exemption limit.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

19 March 2013 Service tax basic exemption is not applicable for those are using brand names and as authorised dealer or person using other business name and brands. so you are liable to charge service tax from 1st Invoice

Sunil

Sunil (Querist)

19 March 2013 But there is a chapter in Authorised Service Station, where it says basic exemption limit is applicable. And it doesn't mention any brand name.

For a authorised service station, it has to be of some manufacturer, where brand name will be used.

My biling is done under my firm name not in the name of the manufacturer( for example, service of mobile phones say, at samsung, billing will be from samsung). I would like to believe the brand name claus is for those services provided by the franchise on behalf of the company. I'm not a franchisee.

Sunil

Sunil (Querist)

19 March 2013 Please find the url where I found the same query answered by Mr R.V.Rao in 2007.

https://www.caclubindia.com/experts/services-by-authorized-service-stations-8696.asp#.UUh4ljfLtek

Will the same answer hold good even now.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

19 March 2013 pls refer this link

https://www.servicetax.gov.in/st-profiles/service-stns-motors.htm

Sunil

Sunil (Querist)

20 March 2013 "Authorised Service Station" definition clearly says it is authorised by a motor vehicle manufacturer.

But in Exemption and exclusion, using brand name disqualifies the small scale service provider from the exemption limit.

When you say authorised service station, it already means they will be using the brand name of the manufacturer.(my assumption)

Doesn't the above two sentences contradict each other.

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