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

Vehicle Body Building on Chassis Exempt from Service Tax, Classified as Manufacturing Activity Under Central Excise Regulations. A company engaged in servicing vehicles as an authorized service center and performing vehicle body building on a contract basis inquired about its service tax liability. The question was whether these activities are subject to service tax and under which category, along with the possibility of abatement for material use. The response clarified that vehicle body building on a chassis is not subject to service tax as it is considered a manufacturing activity under Central Excise regulations.