Comprehensive AMC for Machineries like Chillers etc.,

This query is : Resolved

Prakash Rao (Querist)
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09 March 2009 Dear Sir,

I need to understand the way of charging VAT as well as Service Tax on Comprehensive AMC contract, wherein the bifurcation of materials (used or to be used is unknown) and the services is not available.
Can anyone help me out in this regard?

Dayal

Dayal (Expert)
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05 April 2009 Please refer to the WCT service tax provisions.

There are three options

1. to pay on the gross amount @4% plus Cess - No input credit

2. To seek abatement and pay on the balance amount of 35% @ 10% plus the cess

3. No abatement, full Input cenvat credit and pay service tax on the full amount @10% plus the cess