DEAR ALL,
I HAVE QUESTION THAT I HAVE RECEIVED ONE AMC CONTRACT OF RS. 1000 PER MONTH. THIS AMC CONTRACT INCLUDES BOTH MATERIAL & LABOUR.
SO, ON AMC BILL WHAT I HAVE TO CHARGE EITHER SERVICE TAX @ 12.36 OR LOCAL SALES TAX @ 15 OR IF BOTH ??? IN WHICH PROPORATION.
ADVICE URGENTLY.
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
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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