Applicability of service tax on repair of defective compressors

[Guest]

Where dealer of Kirloskar Compressors who take back the defective compressors from customers and supply the same to Kirloskar for repairing and collect the repair charges from customers. Whether he is liable for service tax

[Ravi Chopra]

Yes, Kirloskar is liable to pay service tax on this activity falling under the head of Maintenance or Repair Services.

[rishi mohan]

Definitely sir, the above activity is liable to service tax u/h Management, maintenance or repair as per section 65(105)(zzg) of the Finance act, 1994.

AI Summary

Kirloskar Compressors Dealer Liable for Service Tax on Repairs under Section 65(105)(zzg) of Finance Act 1994 A discussion on the applicability of service tax on the repair of defective compressors involved a query about whether a dealer of Kirloskar Compressors, who returns defective compressors for repair and collects charges from customers, is liable for service tax. Two responses confirmed that Kirloskar is liable to pay service tax under the category of Management, Maintenance, or Repair Services, as per section 65(105)(zzg) of the Finance Act, 1994.