My query regarding rate of service tax on maint or repair se

Queries 4618 views 4 replies

Chetan Manger

Accountant

24 Points Joined October 2013

Dear Sir,

My Query regarding rate of Service Tax on maintenance or repair service category of NON Comprehensive contract in reverse charge mechanism

Basically we are proprietor firm , we are supplier of floor cleaning machines, We are take Annual maintenance contract (We take non comprehensive contract ) to maintain and repairing floor cleaning machine of customer, our service tax category is maintenance or repair service , now up to the 30.03.2013 we charge service tax @ 12.36% to customer now in reverse charge mechanism how many rate of service tax we must have to charge on our customer

Please replay immediately if possible

at my email address chetanmanger @ gmail.com

Replies (4)

Neljo Davis ACA

Consultant

630 Points Joined October 2008

Please clarify the nature of AMC. Is it purely labour contract or free supply of material required for maintenance is included in contract?

ARJUN ASHOK

CA Industrial Trainee

125 Points Joined October 2012

your rate will be 12.36% for non body corporates and 4.326% for body corporates {(12.36%*70%)*50%}

Harendra Kumar

Tax Advisor

1326 Points Joined July 2011

I am agreewith the both advisor but a little bit queries plz clerify process your AMC under Repairs & maintenance and various N/F in this regard.

Sandeep Jadhav

Bcom ITP STP ITRPS STRPS CS CA FIN

1092 Points Joined October 2008

Dear Arjun & narendra it is clearly mention that it is non comprehensive amc. it is pure labour service Annual maintance charges attract only service tax under abatment scheme .

ii) Where the value has not been determined under clause (i), the person liable to pay tax on the service portion involved in the execution of the works contract shall determine the service tax payable in the following manner, namely:-

(A) in case of works contracts entered into for execution of original works, service tax shall be payable on forty per cent. of the total amount charged for the works contract;

(B) in case of works contract entered into for maintenance or repair or reconditioning or restoration or servicing of any goods, service tax shall be payable on seventy percent. of the total amount charged for the works contract;

(C) in case of other works contracts, not covered under sub-clauses (A) and (B), including maintenance, repair, completion and finishing services such as glazing, plastering, floor and wall tiling, installation of electrical fittings of an immovable property , service tax shall be payable on sixty per cent. of the total amount charged for the works contract;