SERVICE TAX ON SOLAR WATER HEATERS
This query is : Resolved
10 November 2010
I would likme to know whether service tax is leviable on service of solar water heaters ? The client being a private limited company MANUFACTURING and SERVICING solar water heaters.
Please clarify my doubt.
Please clarify my doubt.
13 November 2010
Yes under mamagement maintenacen adn repair catgeory after Rs. 10 lakhs of exemption provided the same is not a branded service. If branded then liable from re.1.
Message likes :
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23 November 2010
To my doubt now I would like to add the following :
1.The product[manufactured by the co in question] is a branded one.
2.The company manufacturing and servicing its own products [only] has service income less than Rs.10 lakhs.
Would it make any difference in the resolution already given ?
Please clarify :
1.Whether service tax registration is required for the company ?
2.Is the branded solar water heater manufactured by the company exempted from service tax ?
1.The product[manufactured by the co in question] is a branded one.
2.The company manufacturing and servicing its own products [only] has service income less than Rs.10 lakhs.
Would it make any difference in the resolution already given ?
Please clarify :
1.Whether service tax registration is required for the company ?
2.Is the branded solar water heater manufactured by the company exempted from service tax ?
24 July 2025
Here’s a detailed clarification based on your questions about **service tax on solar water heaters** (manufacturing and servicing by a company):
---
### 1. Is service tax leviable on service related to solar water heaters?
* **Yes**, service tax is applicable on **management, maintenance, and repair services** provided to solar water heaters if the service provider crosses the threshold of Rs. 10 lakhs turnover in a financial year.
* This is covered under **Management, Maintenance, or Repair (MMR) services**.
* **If the service is branded**, the exemption limit of Rs. 10 lakhs **does not apply** and service tax is payable from **day 1**.
---
### 2. What about if the company is manufacturing and servicing its **own branded products**?
* If the company is servicing only its **own branded solar water heaters**, then:
* The **service tax on servicing** will apply **irrespective of turnover** because it is a **branded service**.
* So, even if the service income is less than Rs. 10 lakhs, the company **needs to register for service tax** and pay service tax on the servicing income.
---
### Summary and Answers to Your Specific Questions:
| Question | Answer |
| ---------------------------------------------- | ------------------------------------------------------------------------------------------------------------ |
| 1. Is service tax registration required? | Yes, if service income exceeds Rs. 10L or if it is branded service (no threshold), registration is required. |
| 2. Is the branded solar water heater exempted? | No, branded services are **not exempt** from service tax and liable from Rs. 1. |
---
### Important:
* Manufacturing activity itself is **not** taxable under service tax, only **service activities** like maintenance, repair, installation, etc., attract service tax.
* If the company provides **services to other companies or customers**, service tax applies based on above rules.
* Keep records of turnover to determine liability.
---
If you want, I can help you with the registration process or the applicable service tax rates and notifications related to this. Would you like that?
---
### 1. Is service tax leviable on service related to solar water heaters?
* **Yes**, service tax is applicable on **management, maintenance, and repair services** provided to solar water heaters if the service provider crosses the threshold of Rs. 10 lakhs turnover in a financial year.
* This is covered under **Management, Maintenance, or Repair (MMR) services**.
* **If the service is branded**, the exemption limit of Rs. 10 lakhs **does not apply** and service tax is payable from **day 1**.
---
### 2. What about if the company is manufacturing and servicing its **own branded products**?
* If the company is servicing only its **own branded solar water heaters**, then:
* The **service tax on servicing** will apply **irrespective of turnover** because it is a **branded service**.
* So, even if the service income is less than Rs. 10 lakhs, the company **needs to register for service tax** and pay service tax on the servicing income.
---
### Summary and Answers to Your Specific Questions:
| Question | Answer |
| ---------------------------------------------- | ------------------------------------------------------------------------------------------------------------ |
| 1. Is service tax registration required? | Yes, if service income exceeds Rs. 10L or if it is branded service (no threshold), registration is required. |
| 2. Is the branded solar water heater exempted? | No, branded services are **not exempt** from service tax and liable from Rs. 1. |
---
### Important:
* Manufacturing activity itself is **not** taxable under service tax, only **service activities** like maintenance, repair, installation, etc., attract service tax.
* If the company provides **services to other companies or customers**, service tax applies based on above rules.
* Keep records of turnover to determine liability.
---
If you want, I can help you with the registration process or the applicable service tax rates and notifications related to this. Would you like that?
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