Applicability of Service Tax on repairing of defective compressors

[Asked by Guest]

Whether the Dealer of Kirloskar Compressor who takes defective compressors from customers and supply the same to Kirloskar for repairing the same is liable for service tax. whether the dealer is liable ??

AI Summary

Maintenance or repair services: dealer may attract service tax if charging for arranging repairs of defective goods.
Liability for service tax depends on whether the dealer's activity constitutes Maintenance or repair services performed "in relation to" repair and whether the dealer receives consideration. The statutory scope covers persons who arrange or provide services connected to repair even if the actual work is done by the manufacturer. The question is fact-specific: responsibility for repair, the payment flow, and whether the work is under warranty determine taxable liability; absence of separate consideration for warranty repairs suggests no service tax on the dealer.