Vat in case of AMC

CA Dheeraj Bansal (Chartered Accountant) (652 Points)

11 August 2011  

sir, i have given a annual maintenance of escaltors (lifts) to a well known company. The amount has to paid in advance. In annual maintenance contract the contractor will carry out repair and also change the parts. But the contractor will not charge anything more than that. 

they have raised the bill as follows

AMC contract charges 2000000 

service tax @ 10.30% 206000

Punjab Vat @ 13.75% 275000 

Total Amount Charged 2481000

It leads to double taxation. Plz suggest me with any circular. It will greatly helps me.

Thanx in advance