Case Law Details
In re M/s. Vista Marine and Hydraulics (GST AAR Kerala)
Whether the supply of spore 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 supply of spares parts / accessories and repair service are distinct and separately identifiable supplies for which the rates are quoted differently and work orders are issued separately specifying the spares / accessories to be supplied and the services to be supplied and the rates applicable thereon as per the rates quoted in the Repair Rate Contract can’t be considered as a composite supply. Where a supply involves supply of both goods and services and the value of such goods and services supplied are shown separately, the goods and services would be liable to tax at the rates as applicable to such goods and services separately.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING,KERALA
The applicant is engaged in the business of rendering repairing service of boats /vessels along with supply of spare parts and accessories, The applicant has entered into a Repair Rate Contract with customer, Naval Ship Repair Yard, Southern Naval Command, Indian Navy, Kochi, to provide service, viz,, repairing of boats as per the rate mentioned in 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:
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