Applicability of service tax on repair of defective compressors

[Asked by 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

Service tax on repair services: repair charges for defective compressors are taxable and payable by the repair provider.
The repair of defective compressors performed by the manufacturer and billed to customers is taxable as Maintenance or Repair Services; the repair provider (manufacturer) is liable to discharge service tax on the repair charges collected.