Automobiles service

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Automobile Services are under SERVICE TAX Bracket..!!

It is supposed to be at usual charge at 10.3% considering the input credits.

 

Shall this not be interpreted as works contract; since supply of spares (VAT isbeing paid) and body building, repair and other labour charges covered under Service tax.

 

It is similar to the works contract and can't it beinterpreted to classify under works contract and claim 60% abatementwithout considering the input credits.

u/s65(107)zzzzz in includes electrical, electronics andreconstruction of commercial vehicle with 4 and 6 wheelers. Ofcourse trucks and not under the purview of service tax.

 

What is your comments, dear fellow members..!!

Replies (1)

Services taxable under works contracts are defined which does not include automobile service . Also, services eligible for abatement are specified which does not include management maintenance and repair. You can claim exclusion of value of materials under noti.12/2003 and pay 10.3% on value of labor. Department may challenge this in the light of recent decision of principal bench of CESTAT in Agarwal color labs that transfer of goods by deemed sale do no qualify for exclusion under noti.12/2003. But this position may be reversed by Higher courts.


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