Tax implication on amc

You have to charge service tax at 12.36% on 70% of AMC value and works contract tax at 4/5 % applicable in your state on 100% of AMC value.

Mr Mukesh,

AMC comes under works contract, & as such 70% will be considered as the service portion. Further keeping in mind the partial reverse charge mechanism, only 50% will be paid by provider & other 50% will be paid by receiver.Therefore it comes out as under:

1000*70%*12.36%*50%=Rs 43.26