Service centre - reg

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R P Ananthakumar

Sr. Officer - Central Excise/Cash

492 Points Posted on 24 July 2013

Dear Expert,

We are a manufacture registered with excise. We want to establish one service centre for servicing our product when returning from customer as warrenty. For this, we will raise the service bill and also we will pay the service tax.

Can we make the service centre at our existing premises?

What is the procedure to make this ?

What type of accountability we have to maintain

Please explain

regards,

RP Ananthakumar

9994980047

Replies (2)

Arun Kumar Singh

GST Advocate

13166 Points Posted on 24 July 2013

The definition of transaction value itself includes warranty and service charges. If goods is return for service under warranty then no need to pay service tax. You can open service centre at your premises also.

R P Ananthakumar

Sr. Officer - Central Excise/Cash

492 Points Posted on 24 July 2013

Dear Mr. Arunkumar,

Thanks for your reply.

For some cases we can use our spare to rectify the product. We can claim from customer for replacement of spares and service. Our customer will pay money for spares and service charge based on our invoice/service bill. At this juncture, we have to pay duty for replacement of spare and pay service tax for service charge. Please explain if it right or not.