Question: In case of servicing of car where they change oil, spares etc. whether it should be classified as composite supply of services or goods or individual supplies which they normally do?
Answer: Where the service centre offers the servicing of the vehicle along with replacement of the consumables to the customer and such particular bundle of supplies is generally available in the market, such supplies of goods and services would be a composite supply whereby the principal supply will be that of the servicing of the vehicle. As from the perspective of the consumer, the service which is obtained is that of overhauling of his vehicle which might include the replacement of certain consumables. However, if a specific supply is being asked for by the customer which is different from the naturally available bundled supplies and which is a combination of goods and services in relation to his vehicle, in such a case, it will be considered as a mixed supply and the supply which has the highest rate of tax shall determine the tax liability of such mixed supply.