Dear Members
Mr. X goes to a car dealer to get his car serviced.
Car dealer charges for labour and for certain parts replaced as a part of service.
Now in my view this is a case of Composite Supply where element of service (labour) is a principal supply and supply of parts (goods) being ancillary supply.
And entire taxable value should be charged at a rate of princiapl supply (supply of labour service).
Am i right?
If not, why?
regards
shivani
CAclubindia
