Car repair service

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 January 2016 Dear Experts, we are providing car repair service turnover 7 lacs plz let me know are we eligible for ssi exemption or not..... thanx & Regard Dinesh Kothari

CA. Divyansh Agarwal

CA. Divyansh Agarwal (Expert)
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04 January 2016 yes definitely u are eligible.

Querist : Anonymous

Querist : Anonymous (Querist)

04 January 2016 sir as we all know the car is covered under brand name.

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CA. Divyansh Agarwal

CA. Divyansh Agarwal (Expert)
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04 January 2016 car is not covered under the brand name. if you are authorized service station and using the brand name of car owner then only such exception is applicable. if you are providing service son your own name regarding and car repair then ssi exemption available.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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04 January 2016 Correctly explained by the Expert,
Where any service is provided under a brand name is taxable and no exemption is available so such service provided or agreed to to be provided.

Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2016 sir assume we are repairing out of warranty branded product and charging the service charge from customer however we are also authorized plz confirm in this case are we entitled to avail 10 lacs exemption or not...

CA Pallav Singhania

CA Pallav Singhania (Expert)
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05 January 2016 No, You can't avail SSI exemption...
No Availability of exemption under Brand name.
However, there is an exception to this rule where Khadi, Stationery, Goods are produced in rural areas are sold in other brand name can avail SSI exemption.

CA. Divyansh Agarwal

CA. Divyansh Agarwal (Expert)
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05 January 2016 yes agree with Mr. Pallav Singhania if you are providing the services using the brand name of car manufacturer then it is clear case of brand hence not eligible for ssi exemption.

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Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2016 sir in this case why No exemption is available... plzz clarify.... 1) No exemption is available because i am repairing branded product or i am repairing after being authorized by company however it is also to be noted that we will issue the invoice to customer from our firm Name.... plzz clarify...

CA. Divyansh Agarwal

CA. Divyansh Agarwal (Expert)
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05 January 2016 Understand the concept to ssi exemption this is for the person who starts there individual business in his own name soliciting client in his own name. exception is there for availing of exemption that if you are soliciting the customer because of the name u are using such as herohonda service centre regardless of your firm name. if you are paying brand owner some amount like franchisee fee or other lumpsum payment then it is proven that u are using the brand name if there is no link between you and brand owner then u can avail the ssi exemption. eg of brand services are mcdonald outlets,subway pizza hut etc.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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05 January 2016 Agree with Mr. Divyash ji,
Either Authorized dealers or Person performing service under the others Brand name are not eligible to claim SSI Exemption.
Clearances bearing the brand name or trade name of another person, which are ineligible for the grant of this exemption.

Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2016 dear both experts, assume i am authorized by herohonda and i am also repairing the other bike like honda, Tvs, etc, on these other bike can i avail exemption or not....

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CA Pallav Singhania

CA Pallav Singhania (Expert)
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05 January 2016 On your on service on which you are not using anyone's brand name where you can avail exemption.

Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2016 sir i am not authorized by TVS but tvs is also anyone brand hence on repair of TVS it is to be accept that i am repairing some one brand therefore no exemption is available.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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05 January 2016 No, I can't be said so..
The memo you are providing it consist a stamp of your authorized service centre.

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Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2016 No No, sir.... as i am not authorized by TVS however on repairance of TVS bike we will issue the invoice to customer it will not consist any company name, stamp etc.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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05 January 2016 Then you can claim SSI exemption on such service provided or agreed to be provided.

Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2016 sir, i will issue the invoice to TVS customer the invoice will consist our firm Name & stamp however our service centre is authorized by only herohonda not by any other company. in this case on issuance of invoice to tvs owner, we are eligible to avail 10 lacs benefit na...

CA Pallav Singhania

CA Pallav Singhania (Expert)
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05 January 2016 You are providing Service to others even if they are not Honda customer for warranty purpose.
Even then your identity exist as authorized service providers of Honda.
Services of an authorised service station shall be taxable even if the vehicle serviced or repaired or restored or reconditioned is one which has not been manufactured by the manufacturer who has authorised the service station.

Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2016 sir that means even on repairance of other bike like tvs, yamaha, bajaj, etc. No ssi exemption is available since our service station is authorized by only herehonda is this correct..

CA. Divyansh Agarwal

CA. Divyansh Agarwal (Expert)
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05 January 2016 The said issue is debatable as u are paying honda only for the customers of honda hence it can be argued that u are not using the brand name of hero honda for providing services related as other manufacturer sale. it would be beneficial for you to start the new sole prop. firm in other name then paying rent to new firm from the a/c of your old one. hence both firm would be separate entity.

Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2016 sir assume i have shop named abc service centre and my shop is authorized by only hero honda not by any other company however i am also repairing other company's bike like Bajaj, TVS, etc. in the same premises, my query is can i avail ssi exemption on repair of other provided that i am not authorized by other company plz noted that i am having a only one ST No. and one premises..

CA. Divyansh Agarwal

CA. Divyansh Agarwal (Expert)
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05 January 2016 you can use the different invoice book for billing for other services.

Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2016 but sir in the different invoice book also the shop name will be also premises as well as ST No also will be same in case is it correct to avail ssi exemption if not plz clarify the way to avail...

CA. Divyansh Agarwal

CA. Divyansh Agarwal (Expert)
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05 January 2016 there is no problem since at that time customer are not coming to you on the basis that you are authorized service station of hero honda they are like general services

Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2016 sir about this query i have ask to many CA but some is in the favoure of availing ssi exemption and some CA not therefore i am remain in confusion that what to do... plz guide.