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TMI BlogApplicability of Service Tax on repairing of defective compressorsX X X X Extracts X X X X X X X X Extracts X X X X ..... Whether the Dealer of Kirloskar Compressor who takes defective compressors from customers and supply the same to Kirloskar for repairing the same is liable for service tax. whether the dealer is liable ?? - Reply By Surender - The Reply = This issue can be decided on facts and circumstances. Who is responsible to repair, who is receiving money, whether it is under warranty or not and like other i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssues to be looked into. - Reply By Brijesh C Verma - The Reply = This is a case where one needs to keep a close look at various aspects of the services being rendered by the captioned 'Dealer'. Firstly, Section 65(64) of the Finance Act 1994 deals with the 'Maintainence or repair services'. These services are of a wide import and also cover those persons (even not being manufacturer), who pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovide any service 'in relation to'Maintainence or repair. The words 'in relation to' is of paramount importance in this regard. Secondly, the services provided by the captioned dealer are undoubtedely performed 'in relation to' the Maintainence or repair of the customers goods. It would not be important whether the actual repair/ maintainence is performed by the dealer or not. Thirdly, tax would b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e liable to be paid if and only if the captioned dealer charges any amount for such activity. It is thus imperative to take a keen look at the facts of the case, the arrangement of the dealer with the Company and other such instrumentalities. - Reply By harsh k .Agarwal - The Reply = In my Opinion ,since the dealer has taken back the Defective Compresssors from the customers and supply the same t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o Kirloskars for repairing thus removing the defect which is present at the time of sale of compressors,as you have mentioned that the compressors are defective one,thus theres seem to be no extra service in the compressor thus no service tax is liable on the dealer - Applicability of Service Tax on repairing of defective compressors - Query Started By: - Chander P Bhatia Dated:- 16-1-2006 Servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tax - Got 3 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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