Works contract - amc charges
This query is : Resolved
01 December 2016
Sir,
we are paying AMC of Rs. 185,695. He his charging 14.5% vat on total and again 14.5% service tax. Please clarify the same
Suresh Babu
we are paying AMC of Rs. 185,695. He his charging 14.5% vat on total and again 14.5% service tax. Please clarify the same
Suresh Babu
CA R SEETHARAMAN
(Expert)
01 December 2016
VAT is payable on 75% of value and service tax is payable on 70% value, not on total value.
01 December 2016
Sir, If it is VAT 75% then service tax remaining on 25% why again 70%. Please give me clarification according to rules if it is possible send notes also
CA R SEETHARAMAN
(Expert)
01 December 2016
Check the abatement chart of service tax, the abatement for repairs and maintenance is 30%.
05 December 2016
Sir, Thank you for your replay. But still Confused. Let us clearly explain my case.
We are paying AMC one year for AC- work contract service/Maintenance or repair service . He is charging 70% of total value 14.5% VAT and 70% on Service Tax. My boss is saying that if 70% vat charges then 30% only on remaining balance service tax.
We are paying AMC one year for AC- work contract service/Maintenance or repair service . He is charging 70% of total value 14.5% VAT and 70% on Service Tax. My boss is saying that if 70% vat charges then 30% only on remaining balance service tax.
CA R SEETHARAMAN
(Expert)
05 December 2016
Your boss is not right. VAT and service tax rightly charged.
06 December 2016
Sir, Thank you, Please send any attachment if my boss is wrong to prove
CA R SEETHARAMAN
(Expert)
07 December 2016
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