d08c4f03_nternational_in_bound___Page_3__Comment
[Reference Code] 036.01 / 01.07.07 [Issue] Authorized dealers of motor vehicles provide to customers free servicing of motor vehicles without charging any amount as service charge from the customers. The vehicle manufacturer promises such a facility to attract customers and reimburses the service charges to the authorised dealers, who provide to customers free servicing of motor vehicles. However, as per agreement, consideration for the service provider is not directly paid by the customer but by the vehicle manufacturer. Whether such 'free services' given to the customer free of cost by the authorized dealers (for which they are reimbursed by the vehicle manufacturers) are leviable to service tax under authorised service station service [section 65(105) (zo)]? [Comment] 
In this case, service is provided by an authorised service station to a customer and the service provider receives the consideration for the services provided. Service tax is leviable on the amount received from the vehicle manufacturer for the purpose of servicing of vehicles.
014 - Service Tax - Circulars - Year 2007 - Circular No.- 90 /1/2007, dated - 03-01-2007 - Applicability of service tax on international in-bound - Page 3
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