R P Ananthakumar (Sr. Officer - Central Excise/Cash) (514 Points)
24 July 2013Dear 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
Arun Kumar Singh
(GST Advocate)
(15220 Points)
Replied 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)
(514 Points)
Replied 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.
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