Exemption - Cost of Goods or Material Sold by the provider of service

Exemption for goods supplied with services clarifies when goods' value is excluded from service tax liability.

Where goods or materials supplied with services are separable and sold under an independent contract, only the service component is assessable for service tax; where such goods are inseparable and integral to the service, deduction or exemption of the goods' value must be determined under specific provisions, since a previously general exemption notification was withdrawn after the negative list introduction and relief now depends on applicable abatement, composite-rate or valuation schemes.