Service Tax on maintaince

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Shambhu Agarwal (Querist)
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13 February 2010 We are generating electricity through windmill and suzlon is appointed for it maintance and suzlon is charging VAT & Service Tax on its bill.Is it correct?

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)
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18 April 2010 If the contractor is passing the property of his goods in executing the works contract, the contract become taxable works contract.

In your case if the contractor is providing spares etc as a part of the contract and no separate bills are raised for that, VAT will also be applicable inaddition to Service Taxes. But by paying the both your total liabilty should not exceed 12.5%.