Annual Maintenance Contract has been awarded for water purifier with replacement of specific consumables on periodic basis (labour + material). Party has raised the combined bill & without charging VAT. The above AMC will fall under Work Contract Service, if yes what will be percentage for labour charges? Service provider is an individual & Service Receiver is registered with ST Deptt.
27 April 2013
yes it is under works contract, if there is vat liable on material supplied in your state, whether charged separately in bill or not. 70% taxable 30% exempt as per rule 2A of STVR.
Reverse charge applicable for 50% value only if receiver is body corporate
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