Servcie tax on Information technology software service

[Guest]

Dear Sir,

One of our Vendor providing AMC service of System Software.Under his invoice he is charging Service tax 14% on 90% of value and Vat on 10% of value.Therefore please explain whether he has charged correctly and if yes please give us any clarification, references regarding this ,Thanks & regards.

AI Summary

Clarification on AMC Tax: Apply 14% Service Tax to Total Service Value; VAT Only on Goods. Invoice Needed for Analysis. A vendor is providing an Annual Maintenance Contract (AMC) for system software and is charging 14% service tax on 90% of the invoice value and VAT on the remaining 10%. The inquirer seeks clarification on whether this tax application is correct. The response indicates that service tax at 14% should be applied to the total service value, while VAT is applicable only to goods. Further analysis requires a detailed invoice.