SERVICE TAX ON SOLAR WATER HEATERS

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NANDAKUMAR.R.

NANDAKUMAR.R. (Querist)
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10 November 2010 I would likme to know whether service tax is leviable on service of solar water heaters ? The client being a private limited company MANUFACTURING and SERVICING solar water heaters.

Please clarify my doubt.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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13 November 2010 Yes under mamagement maintenacen adn repair catgeory after Rs. 10 lakhs of exemption provided the same is not a branded service. If branded then liable from re.1.

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NANDAKUMAR.R.

NANDAKUMAR.R. (Querist)
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23 November 2010 To my doubt now I would like to add the following :

1.The product[manufactured by the co in question] is a branded one.

2.The company manufacturing and servicing its own products [only] has service income less than Rs.10 lakhs.

Would it make any difference in the resolution already given ?

Please clarify :

1.Whether service tax registration is required for the company ?

2.Is the branded solar water heater manufactured by the company exempted from service tax ?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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24 July 2025 Here’s a detailed clarification based on your questions about **service tax on solar water heaters** (manufacturing and servicing by a company):

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### 1. Is service tax leviable on service related to solar water heaters?

* **Yes**, service tax is applicable on **management, maintenance, and repair services** provided to solar water heaters if the service provider crosses the threshold of Rs. 10 lakhs turnover in a financial year.
* This is covered under **Management, Maintenance, or Repair (MMR) services**.
* **If the service is branded**, the exemption limit of Rs. 10 lakhs **does not apply** and service tax is payable from **day 1**.

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### 2. What about if the company is manufacturing and servicing its **own branded products**?

* If the company is servicing only its **own branded solar water heaters**, then:

* The **service tax on servicing** will apply **irrespective of turnover** because it is a **branded service**.
* So, even if the service income is less than Rs. 10 lakhs, the company **needs to register for service tax** and pay service tax on the servicing income.

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### Summary and Answers to Your Specific Questions:

| Question | Answer |
| ---------------------------------------------- | ------------------------------------------------------------------------------------------------------------ |
| 1. Is service tax registration required? | Yes, if service income exceeds Rs. 10L or if it is branded service (no threshold), registration is required. |
| 2. Is the branded solar water heater exempted? | No, branded services are **not exempt** from service tax and liable from Rs. 1. |

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### Important:

* Manufacturing activity itself is **not** taxable under service tax, only **service activities** like maintenance, repair, installation, etc., attract service tax.
* If the company provides **services to other companies or customers**, service tax applies based on above rules.
* Keep records of turnover to determine liability.

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If you want, I can help you with the registration process or the applicable service tax rates and notifications related to this. Would you like that?

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