Service Tax and VAT on AMC

Dear Members,

One of our vendor have charged Servicetax on 100% value and VAT 75% value of services i., AMC on Computer Services and UPS. When asked, he said there was an notification to charge on such basis. When asked to produce, he hasnot done it till date been month's time now.

Could you please confirm, it is right charging both Service Tax and VAT at the above mentioned proportion on the total value? If so, could you please share the notification or relevant rules indicating the same.

Replies (5)

If there is a provision in AMC that in case where any part of the computer which is not working and is requred to be replaced free of cost then he has to charge VAT on 75% of charges and service tax on 25% of AMC charges [This is as per Karnataka Value Added Tax].

Hope this will help you to understand the concept of taxation in both way

 

/articles/double-taxation-or-fair-taxation--9628.asp

For AMC there are several options for the service provider:

A. Pay VAT on 100% and ST on 100%. VAT ITC would be available for purchases locally for sett off against VAT.

He would then also be eligible for cenvta credit on excise duty paid on inputs used in provding that service. CG + Input services credit also would be available.

B. Pay VAT on the amount representing the value of goods transferred if identifiable and pay ST on the balance claiming deduction under Not. 12/2003.

C. Pay VAT on gross less specified amount [ in Karnatak 25% deduction for labour/. services allowed] and pay ST on the balance.

In your case it appears that the service provider is availing the option C for VAT and option A for service tax.

actually our's is AC Busincess and even we providing the AMC Also, we need to know how many percentage as to take service tax and sales tax (vat).

Kindly let me konw the answer of the question.

My E-Mail Id is naveen.1025 @ gmail.com

 

what in case of Air conditioning AMC business

please help me out on how to bill ie regarding vat and service tax.

Thanks in Anticipation.

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