Comprehensive contract

As there are no explicit provisions under the FA, 1994 i.r.o AMC contracts, we may take the shelter under N. No.12/2003-ST according to which the value of materials on which VAT/WCT was paid can be excluded from gross amount and balance representing value of service on which service tax can be paid @ 10.3%.  The abatement being followed presently by you is as per VAT but not as per ST which will lead to complications.  Hence, best recourse is N. No.12/2003-ST.

CA. C V SURYAM

Mob: 9177171123 / 9848180210

As there are no explicit provisions under the FA, 1994 i.r.o AMC contracts, we may take the shelter under N. No.12/2003-ST according to which the value of materials on which VAT/WCT was paid can be excluded from gross amount and balance representing value of service on which service tax can be paid @ 10.3%.  The abatement being followed presently by you is as per VAT but not as per ST which will lead to complications.  Hence, best recourse is N. No.12/2003-ST.

CA. C V SURYAM

Mob: 9177171123 / 9848180210

Hyderabad

As there are no explicit provisions under the FA, 1994 i.r.o AMC contracts, we may take the shelter under N. No.12/2003-ST according to which the value of materials on which VAT/WCT was paid can be excluded from gross amount and balance representing value of service on which service tax can be paid @ 10.3%. The abatement being followed presently by you is as per VAT but not as per ST which will lead to complications. Hence, best recourse is N. No.12/2003-ST.

CA. C V SURYAM

Mob: 9177171123 / 9848180210

Hyderabad

The service falls under " Management , Maintenance and repair." There is no specific abatement for this service. Howver, benefit of notification no.12/2003 can be taken . ie value of goods sold in the course of providing service can be excluded provided you have support documents to prove trhis.

thanks a lot for the replies which helped me lot but since i am charging serivce tax on 40% and if in contract suppose machine parts replaced in comprehensive contract is upto 30% because machine was not used that frequently then in that case can there be a problem with service tax or you suggest to charge service tax full on 100% contract value or charging  servicce tax @ 10.30% on 40% of contract value and sales tax @ 12.5% on 60% contarct value is advisable because i have to convince my customer too.