Exemption to goods & materials sold by service sold by service provider to recipient of service - 012/03 - Service Tax

Exemption for goods and materials supplied with taxable services reduces service tax base when documentary proof exists.

The notification exempts from service tax an amount equal to the value of goods and materials sold by the service provider to the recipient, on condition that there is documentary proof specifically indicating that value. The exemption applies only where no cenvat credit on such goods and materials has been taken, or where such credit was taken, the service provider has paid an amount equal to that credit before the sale.