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Service tax on amc

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This query is : Resolved

gourav jain (Querist)

10 October 2014 What is Point of Taxation in case of "annual maintenance charges" service provided by IT Department?
Can we consider this service as "continuous supply of service"?
If AMC agreement is silent about completion of service then what is the date of completion of service?

Thanks.

Jayant Bothra

Jayant Bothra (Expert)

11 October 2014 Dear Gaurav,

It would be absurd if we call AMC as continuous supply of service. In case of continuous supply of service the provision of whole of part of service is determined periodically on the completion of an event in terms of contract which requires the receiver of service to make payment to service provider.

The AMC contract is for the proper functioning of the machines or so and for which no periodical testing is done by the service receiver upon which the payment is released.

Thanks & Regards

CA JAYANT BOTHRA
ca.jayantbothra@gmail.com

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