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TaxTMI 
2019 (11) TMI 40
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.... Repair Rate Contract. On the basis of such contract, necessary spare parts / accessories and repair service are provided by the applicant. Applicant requested advance ruling on the following: Whether the supply of spare parts / accessories and repair service can be considered as composite supply wherein the principal supply is repair service and hence the rate of tax for all the supplies, consisting of spare parts / accessories and repair service, be taken as 18% ? The authorized representative was heard. It has been pointed out that the applicant being an authorized dealer of Volvo Penta, a division of Volvo Group India (P) Ltd, whenever there is a requirement of repair of Volvo Penta engine installed boats, on the basis of qu....
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....e to be rendered along with rate shall be separately specified in the Work Order as per the Repair Rate Contract. On completion of the work the applicant raises invoice to the Naval Ship Yard indicating therein the value of spare parts / accessories and service charges separately as mentioned in the work order. The question raised by the applicant is whether the supply of spare parts / accessories and repair service can be considered as composite supply wherein the principal supply is repair service arid hence the rate of GST applicable is the rate applicable to supply of repair service. The Article -4 - Para 4,1.1 of the Repair Rate Contract agreement reads as follows; 4.1: Contract Price 4,1.1: This is rate contract for comple....
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....ccessories to be supplied and the services to be supplied and the rates applicable thereon as per the rates quoted in the Repair Rate Contract. The applicant is also issuing invoices separately indicating the value of spares / accessories and the service charges. Further the Repair Rate Contract provides for revision of rate of supply of spares / accessories separately and fall clause is also provided for the supply of spares / accessories. Considering the clauses as above in the Repair Rate Contract, the fact of issue of work order separately for supply of spares / accessories and repair service the activity of the applicant is covered by the clarification in Para 2.2 of CBIC Circular No.47/21/2018 - GST dated 08.06.2018 wherein it i....