16 July 2012
All authorised dealer of Maruti Suzuki India Ltd.is making Extended Warrenty on cars on behalf of Maruti.The dealers receive extended warenty policy amt. from customer and disburse it to Maruti.The dealers get commission against such policy making , which is chargable to service tax.WHETHER ANY SERVICE TAX CHARGABLE ON EXTENDED WARRENTY POLICIES AFTER 01.04.12? IF YES WHO IS LIABLE TO PAY THE SERVICE TAX, DEALER OR MANUFACTURER & WHEN?
16 July 2012
with effect from 01/07/2012, your business is not covered under "negative list" So, you are liable to pay service tax. Please ensure the limit of 10lakh is getting crossed.