Liability of service tax

[JOSHIL JAIN]

One of my client is authorised dealer of MUL. Dealership sells Preowned Car ( Second Hand Cars ). Dealership purchases these cars from customers and sells it to other cutomers. In this process it also deposit VAT also to the state govt. A/c. Maruti also charges Management fee and warranty fee for these cars as to certify it from MUL. Now please advise whether the profit earned on this sales and purchases made by dealership is liable for service tax or not.

AI Summary

Preowned Car Dealer's Profits from Sales Not Subject to Service Tax Due to Own Name Transactions A client, an authorized dealer of a car manufacturer, sells preowned cars and pays VAT to the state government. The manufacturer charges a management and warranty fee for certifying these cars. The client inquires whether the profit from these sales and purchases is subject to service tax. The response clarifies that since the client is buying and selling the cars in its own name, these transactions are not subject to service tax.