Client is registered under Management, Maintenance and Repair services operating under propriotership.
Company providing services in IT hardware & Software. they provide maintenance services for computers etc under AMC.
The AMC contracts are comprehensive. It is not divisible in terms of value of material consumed and the labor put in during AMC period.
Therefore, client have been raising invoices to customers with comprehensive value and levy service tax on the total invoice value and this is considered as taxable value of service . There are no seperate charges are billed for repair or replacement of the parts.But it is a fact that some material/parts are always consumed in the course of maintenance service under AMC.
My query is how we should bill AMC contracts as usage of goods(applicable to VAT) will be known on actual basis only and not while getting the AMC charges advance payment.
For details of case u can mail at canikeshsheth @ gmail.com
CAclubindia
