Log in Register

Login to your account

Username *
Password *
Remember Me

Create an account

Fields marked with an asterisk (*) are required.
Name *
Username *
Password *
Verify password *
Email *
Verify email *
Captcha *
View more blog entries

Consult Construction

Consult Us For Construction

SC : Service-tax applicable on 'service' component in retreading of tyres, not gross consideration

Posted by on in Service Tax
  • Font size: Larger Smaller
  • Hits: 835
  • Subscribe to this entry
  • Print
  • Report this post
  • SC holds that in a contract for retreading of tyres, service tax is payable only on service component and not on entire gross value, accordingly assessee is liable to pay on 30% of retreading charges as quantified under the State Act;
  • Referring to Section 67 of Finance Act which deals with valuation of taxable services for charging service tax, Notification No.12/2003-ST and CBEC Circular dated April 7, 2004, SC states that costs of parts or other material, if any, sold (deemed to be sold) to the customer while providing maintenance or repair service is specifically excluded;
  • Rejects majority view of the CESTAT that in retreading of tyre, there is no sale or deemed sale of the parts or other materials used in the execution of the contract of repairs and maintenance and hence, entire gross value is liable to service tax;
  • Also rejects Revenue contention that there is no evidence forthcoming from the side of the assessee that the value of the goods or the parts used in the contract and sold to the customer constitute 70% of the value of the service rendered; States that no dispute has been raised with regard to the assessment of assessee on its turnover under the local/State Act, insofar as payment of VAT on that 70% component is concerned : SC
Rate this blog entry:
Trackback URL for this blog entry.


  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest Wednesday, 18 September 2019

Like us on facebook

Twitter Feed

ConsultC Please find the latest presentation given to select gathering of real estate developers at Kolkata on West Bengal H… https://t.co/Uizrcczy13
ConsultC Apart from the intricacies of the Forms and constant regulatory changes, GST has a lot of other aspects. We had an… https://t.co/YB1asAgU2s
ConsultC Second Edition of our book released with latest amendments upto September, 2018 https://t.co/eOwUcNZife


304, Super Plaza, Sandesh Press Road, Vastrapur, Ahmedabad
+91 - 079 - 40032950
This email address is being protected from spambots. You need JavaScript enabled to view it.

markerFind on Google Maps

Who we are

We are Ahmedabad based professional consulting firm. We are providing various services to Construction, Real Estate and Project Companies in various areas like Indirect Taxation – Service Tax & Multi state VAT consultancy, ERP implementation, Site & Management audit, Designing Tender & other related contractual documents etc.