d08c4f03_nternational_in_bound___Page_3__Comment
[Reference Code] 036.03 / 01.07.07 [Issue] Whether spare parts sold by a service station during the servicing of vehicles is liable to payment of service tax? Whether exemption can be claimed on the cost of consumables that get consumed during the course of providing service? [Comment] 
Service tax is not leviable on sale of goods. Whether a given transaction between the service station and the customer is a sale or not, is to be determined taking into account the real nature and material facts of the transaction. When there is a sale, sales tax / VAT would have been paid. Any goods used in the course of providing service are to be treated as inputs for providing the service and accordingly, cost of such inputs should form integral part of the value of the taxable service.
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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