10 October 2014
What is Point of Taxation in case of "annual maintenance charges" service provided by IT Department? Can we consider this service as "continuous supply of service"? If AMC agreement is silent about completion of service then what is the date of completion of service?
It would be absurd if we call AMC as continuous supply of service. In case of continuous supply of service the provision of whole of part of service is determined periodically on the completion of an event in terms of contract which requires the receiver of service to make payment to service provider.
The AMC contract is for the proper functioning of the machines or so and for which no periodical testing is done by the service receiver upon which the payment is released.
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