Taxes to be charged on Annual Maintenance Contract

[Narasimha Subramanian]

Dear Sir/Madam,

We provide comprehensive and non comprehensive annual maintenance contracts. It is an IT product. What are the applicable taxes for the same?

[YAGAY and SUN]

Service Tax and VAT (WCT) are applicable taxes.

[Narasimha Subramanian]

Thanks Pradeep,

Are both the taxes applicable and if so is it on the full contract value?

AI Summary

Service Tax applicability for IT Annual Maintenance Contracts may coincide with VAT, raising question of levy on full contract value. A practitioner exchange identifies Service Tax and VAT (WCT) as applicable taxes on IT Annual Maintenance Contracts and poses whether both taxes apply concurrently and whether each is chargeable on the full contract value.