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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?

Clarification sought on whether Service Tax and VAT (WCT) apply to entire value of IT maintenance contracts. An inquiry was made regarding the applicable taxes on comprehensive and non-comprehensive annual maintenance contracts for IT products. One respondent clarified that Service Tax and VAT (WCT) are applicable. The inquirer sought further clarification on whether both taxes apply to the full contract value. (AI Summary)
Service Tax
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