One of my client has taken an AMC for upkeeping the equipment in proper working usage under a indivisible contract agreement. Whether Service tax shall be levied on total value of AMC and then VAT shall be levied thereon? Kindly respond.
One of my client has taken an AMC for upkeeping the equipment in proper working usage under a indivisible contract agreement. Whether Service tax shall be levied on total value of AMC and then VAT shall be levied thereon? Kindly respond.
If the AMC involves provision of services and materials , i.e a works contract,
He has two options -
Seggregate Material and Labor and charge VAT on material and Service tax on Labor.
Avail composition scheme and charge VAT/Service tax on entire amount at Composite rates.
VAT is not charged on service tax component.
Sri Aurobindo Gnostic Centre of Education
New Delhi
CA
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