Service tax liability - category - vehicle body building

[paresh zatakia]

a company is servicing vehicle(authorized service centre for one brand),also it doing vehicle body building on contract basis is it liable to service tax?under which head?if yes shall it get abatement for material use Regards Paresh Zatakia

[Surender Gupta]

There is no service tax on vehicle body building (fabrication activity) on Chasis on contract basis since body building activity is amount to manufacture in Central Excise.

AI Summary

Manufacture classification excludes service tax on contract vehicle body building, placing such fabrication within excise jurisdiction. The contract fabrication of vehicle bodies on chassis is characterized as manufacture and therefore falls under Central Excise rather than service tax, so contract vehicle body-building is not liable to service tax and abatement for material use is inapplicable when the activity is treated as excisable manufacture.