TaxTMI 
TaxTMI 
Sir, please guide whether AMC for different equipment and consumables items such as Cylinder gases etc. are to be classfied under Repairs and Maintenace service (100% Service tax) or Works Contract Service (70%) for the purpose of valuation of service tax liability?
AMC-Is AMC is a service under Repairs and Maintenance or Works Contract Service
08 Apr 2015 
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Service portion in works contract: valuation rules require gross contract value less goods value, with statutory presumptions for repairs.
Rule 2A prescribes that the service portion in a works contract equals the gross amount charged less the value of property in goods transferred; where VAT or sales tax has been paid on goods, that value is to be adopted. The rule enumerates inclusions for works contract service value-labour, sub-contractor payments, design fees, machinery hire, consumables, establishment costs, similar expenses and profit relatable to labour and services-and provides statutory presumptions to compute the service portion where direct determination is not possible. (AI Summary)
Rule 2A prescribes that the service portion in a works contract equals the gross amount charged less the value of property in goods transferred; where VAT or sales tax has been paid on goods, that value is to be adopted. The rule enumerates inclusions for works contract service value-labour, sub-contractor payments, design fees, machinery hire, consumables, establishment costs, similar expenses and profit relatable to labour and services-and provides statutory presumptions to compute the service portion where direct determination is not possible. (AI Summary)