21 October 2008
1.warranty spares: During the warranty period, the dealer doing warranty service as per agreement for customer for serivcing & replacing parts on free of cost. I know service tax leviable on service portion of work ie labour charges. As per service tax circular, parts sales are exempt if documentary proof exit for sale of spares separately in invoice. In this case spares not sold. Actually no gain araised on reimbursement of warranty spares. Please explain with details whether warranty spares are liable for service tax?
2. Management, maintenance or repair work Contract work involve material and labour. vat paid on material sales. whether materila value is included in assessble value for service tax. Please clarify with detials Adv. thanks from
CAclubindia
