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Liability of service tax, Service Tax |
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Liability of service tax |
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One of my client is authorised dealer of MUL. Dealership sells Preowned Car ( Second Hand Cars ). Dealership purchases these cars from customers and sells it to other cutomers. In this process it also deposit VAT also to the state govt. A/c. Maruti also charges Management fee and warranty fee for these cars as to certify it from MUL. Now please advise whether the profit earned on this sales and purchases made by dealership is liable for service tax or not. Posts / Replies Showing Replies 1 to 1 of 1 Records Page: 1
From the query it appears that your client, not MUL, is the purchasing and selling of used cars in its own account (name). Therefore, this transaction is not liable under service tax.
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