Tax Liab.on AMC with materials- Vat or Service Tax

Querist : Anonymous (Querist) 24 March 2011 This query is : Resolved
Dear Experts
kindly advise if i provide and entered into an AMC Agreement with a co.for providing the repair of electrical equipments and some components cost are also involved in the AMC, what would be the tax liab.and how to calculate, whether it is only service tax or some vat would also be liable to pay.

Kindly provide the rulling .
also arrange to send the judgement in the case of "WIPRO GE MEDICAL SYSTEMS (P) LTD. Vs commissioner of srvice tax, bangalore, 2009-TMI -32871-CESTAT, BANGALORE

Thanks and regards

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Peeyush (Expert) 24 March 2011
AMC attracts Service Tax Liability.

Peeyush

R.Ramachandran (Expert) 24 March 2011
It will attract both Service Tax and VAT depending upon the value of the services and value of goods. The profit in the AMC would be apportioned between service element and material element.

MUKESH SHARMA (Expert) 27 March 2011
BOTH SERVICE TAX AND VAT WILL BE APPLICABLE . ON MATERIAL USED IN THE AMC IS VAT TAXABLE

soumitra basu (Expert) 02 April 2011
It will atract both service tax and VAT under the head Works Contract. However, there is a scope to reduce tax burden under composite scheme.

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