30 April 2013
if AMC is with material and there is a composite contract, for material and service, then it will fall into works contract and then..
IF, BY (SP) - any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territory TO (SR) - a business entity registered as body corporate, located in the taxable territory; providing to a body corporate,
TAX LIABILITY: when AMC of goods 70% of the Total amt charged is taxable. 12.36% on that when AMC of Immovable property = 60% of the Total amt. charged is taxable. 12.36% on that
NOW under reverse charge SP and SR will pay half half of the tax i.e, 50% 50%
BUT NOTE AS MENTIONED ABOVE IN FIRST SENTANCE ONLY IN CASE IT FALLS UNDER WORKS CONTRACT,
OTHER WISE normal tax 12.36% on 100% value. NO REVERSE CHARGE IF NO WORKS CONTRACT
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