Reverse charge

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

27 September 2012 Whether reverse charge basis of service tax is applicable on Annual Maintenance contract of A/c Maintenance , if answer is yes it will come in which category of reverse charge.

CA Suresh Jain

CA Suresh Jain (Expert)
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27 September 2012 Reverse charge is not applicable to the AMC for air conditioner maintenance whether it is with material or without material

Querist : Anonymous

Querist : Anonymous (Querist)

27 September 2012

Sir, Can u explain me the reason of ur reply.....

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CA Suresh Jain

CA Suresh Jain (Expert)
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29 September 2012 Please check :-

1. Definition of works contract u/s. 65B(54) which reads
(54) "works contract" means a contract wherein transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods and such contract is for the purpose of carrying out construction, erection, commissioning, installation, completion, fitting out, improvement, repair, renovation, alteration of any building or structure on land or for carrying out any other similar activity or a part thereof in relation to any building or structure on land;
it is clear from the above that it is not works contract

2. Notification on 30/2012 which specifies the services which attracts RCM. AMC is not part of it