AMC CONTRACTS - WCT AND OR SERVICE TAX

This query is : Resolved

RAVINDER KHULLAR (Querist)
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28 August 2008 One of our client is providing AMC for Telecome Equipements. I would like to know the provisions of WCT and Service Tax pertaining to such activity. Please Note that AMC billing is being done in Advance and the amount of material that may be required to be used for the AMC is neither ascertainable nor any benchmark exists for the same.

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)
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22 September 2008 Your contract seems to be one indivisible works contract and it will attract VAT. In your case, if there is any composite scheme of WC, that may suit you.

As regards Service Tax is concerned, the same is leviable only on the value of services (excluding value of goods). Hence it is better if you opt for WC copmposition scheme under Service Tax Act too.