Applicability of service tax on retreading of tyres under management, maintenance or repair

[SHANTI NARAIN]

Please clarify whether the retreading of tyres is covered in service tax under the head management, maintenance or repair. There is no contract/agreement with any party. The party walks to the shop for getting the tyre retreaded. If covered under which clause. Thanks

[Madhukar N Hiregange]

Retreading of tyres may come under Management maintenacne and reapid catgory. This activity would be liable from 16.6.2005. Since it is a works contract it could be argued that there is no liability relying on Daelim Industries and L&T supreme court decisions.

Retreading of tyres not covered under head management,maintenance or repair service .with effect from 1-6-2007 under clause(64)declare that repair and maintenance of computer software shall be treated as repair and maintenance of good. It is covered in service tax under head Authorize service station

AI Summary

Service tax applicability on tyre retreading: competing classifications as maintenance, authorised service station, or works contract defence.
Whether retreading of tyres attracts service tax as a management, maintenance or repair service was queried. One reply treats tyre retreading as falling within management, maintenance and repair services and therefore taxable, while noting a possible works contract argument to contest liability. An alternative reply rejects MMR classification and indicates tyre retreading is covered, if at all, under authorised service station services rather than the maintenance head.