Service Tax on Maintenance Charges
This query is : Resolved
30 November 2007
We are providing maintenance services to our clients and we are charging maintenance charges for that.We are charging service tax on service fees which is 15% of our actual expenditure on maintenance.Are we doing the right thing or we should charge the service tax on the whole amount i.e. including our actual expenditure.
30 November 2007
It is advisable to word the contract properly.
You can vivisect your contract for replacement of spares on which appropriate VAT to be paid and other for Service (repairs and maintenance.
It would be ideal to raise two different bills.
But if you have a composite contract then review the works contract service tax provisions
visit
https://www.caclubindia.com/homepage/DM%20Associate/
You can vivisect your contract for replacement of spares on which appropriate VAT to be paid and other for Service (repairs and maintenance.
It would be ideal to raise two different bills.
But if you have a composite contract then review the works contract service tax provisions
visit
https://www.caclubindia.com/homepage/DM%20Associate/
02 December 2007
Dear Sir
Unless you are able to prove that the expenses were met by you in Pure Agent's capacity (eight conditions are there to be fulfilled) you can not exclude the same from ST ambit.
As per the provisions of the Finance Act 1994 it is very clear that the gross amount (including reimbursements, subject to pure agent concept) is the amount to be taxed.
Please ensure that the contracts are worded properly and relevant supporting records are adequately available.
Unless you are able to prove that the expenses were met by you in Pure Agent's capacity (eight conditions are there to be fulfilled) you can not exclude the same from ST ambit.
As per the provisions of the Finance Act 1994 it is very clear that the gross amount (including reimbursements, subject to pure agent concept) is the amount to be taxed.
Please ensure that the contracts are worded properly and relevant supporting records are adequately available.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS on Consultancy- Non DTAA
- Depreciation of fixed assets- coop housing society in mumbai
- Reopen of assessment proceeding
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Rental income gst and it purpose
- EPF FULL & FINAL RULES IN 2026
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- FTS Taxable under 115A
- Experts need help
- Management System (IMS)
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
