Photography services — Goods consumed during providing service and not available for sale, not entitled to benefit under Notification No. 12/2003-S.T. - Service Tax - F. No. 233/2/2003-CX. 4

Photography services Goods consumed during providing service and not available for sale, not entitled to benefit under Notification No. 12/2003-S.T. M.F. (D.R.) Letter F. No. 233/2/2003-CX. 4 Dated 3-3 -2006 Subject : Service tax on Photography services Clarification regarding. The undersigned is directed to state that Notification No. 12/2003-S.T. dated 20-6-2003 , exempts the value of goods and material sold by the service provider to the recipient of service, during the course of providing service, subject to the condition that there is documentary evidence indicating the value of the goods and materials. 2. On certain representation from Punjab Color Lab Association, Jalandhar, a letter was issued by Deputy Secretary (CX. 4) dated 7th April, 2004 clarifying that the exemption is available if the service provider maintains the records showing material consumed/sold while providing the taxable service. After issuance of the said letter various references were received from field formations and photographic associations seeking clarification whether the value of materials consumed during the provision of service by the service provider for rendering the service is also excludable from the value of taxable service. 3. The matter has been examined by the Board. The intention of the Notification No. 12/2003-S.T., dated 20-6-2003 is to provide exemption only to the value of goods and material sold subject to documentary evidence of such sale being available. Therefore, in case, the goods are consumed during the provision of service and are not available for sale, the provision of the said notification would not be applicable. Therefore, in supercession of clarification to contrary, it is clarified that goods consumed during the provision of service, that are not available for sale, by the service provider would not be entitled to benefit under Notification No. 12/2003-S.T., dated 20-6-2003 .