Reverse charge for amc contract

If goods are also transferred as a part of AMC, then it shall qualify works contract as per section 65B(54) of finance act,1994... And accordingly, by virtue of s.no. 9 of notification no. 30/2012-ST, company shall be liable to pay 50% of ST under reverse charge mechanism..... And regarding rate/valuation, rule 2A of service tax(determination of value)rules,2006, needs to be referred........

With due respect to the reply given by my dear friend sumit ji (whom I believe has very good command over service tax law), in my view, the given service falls under the specific descripttion 'cleaning services' and shall not fall under 'works contract' as defined under sec. 65B(54). Even if some materials are provided by the service provider like say harpic or other cleaning goods are provided by the service provider, then also there is no transfer of property in goods. such goods are simply consumed in providing the service.

 

Hence reverse charge is not applicable in the given case.