Service Tax input on AMC

[SARAVANAN RENGACHARY]

Can we charge Service Tax @ 14.5% on 100% value of output AMC and avail Service Tax input on credit on input service of AMC ?.

I am asking this question because, as per Determination of Valuation rules 2012, service tax is payable on 70% of AMC value subject to that service provide is not eligible to avail input credit on any service.

please clarify.

AI Summary

Service tax input credit eligibility for AMC: segregation of service portion permits full service levy with input credit access.
If the service portion of an AMC (works contract service) can be valued separately, service tax may be applied to the gross service value and CENVAT credit claimed for inputs, capital goods and input services. If segregation is not possible, valuation follows the works contract aggregation with an abatement treating part of the gross value as goods; the rule's Explanation disallows credit for duties or cess on inputs related to the works contract but does not bar credit for capital goods or service tax on input services.