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Free service on car by car delear


30 April 2012 if any car dealer provide free service on sale of new car (generally 3 to 6 free service) and billed for amount of rs.0/-, and the same(charges of free service) is included in to the sale price of car then the free service provided by dealer is chargeable to service tax ?, if it is reimburse by the car company to dealer by whatever name (adjusted profit margin, or commission or included sale price) than it is chargeable to service tax?

30 April 2012 in the case of maruti suzuki court held that the maruti will paid the excise duty on that amount

for example :
maruti sells a car to dealer for rs 100 and dealer sells it for 200
in 200 there is 50 rs is for service charges which is not shown there
now maruti will have to paid excise duty on rs 150/-



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