Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Applicability of vat in case of amc

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2011 sir, i have given a annual maintenance of escaltors (lifts) to a well known company. The amount has to paid in advance. In annual maintenance contract the contractor will carry out repair and also change the parts. But the contractor will not charge anything more than that.
they have raised the bill as follows

AMC contract charges 2000000
service tax @ 10.30% 206000
Punjab Vat @ 13.75% 275000
Total Amount Charged 2481000

It leads to double taxation. Plz suggest me with any circular. It will greatly helps me.
Thanx in advance

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2011 plz sugget the treatment

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

13 August 2011 AMC is to be treated other than works contract. It may happen that you might be required to incur expenses and might not too. So you have to pay ST and VAT both

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now