TaxTMI 
TaxTMI 
Annual maintanence of Air condition units which consists of 50% labor and 50% supply of spares. Whether this can be treated as WORKS CONTRACT and can opt for composition and can collect and pay service tax @ 4%
Applicability of Works Contract scheme
18 Apr 2009 
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Works contract classification: AMC maintenance services are not works contracts, so composite rate cannot be applied.
Maintenance, management and repair services under AMCs for air conditioning units are not works contract services and cannot be taxed under the composite works contract rate. Materials supplied in an AMC may be deducted under Notification 12/2003 subject to conditions, and VAT paid on the AMC can permit an exemption up to the VAT amount. (AI Summary)
Maintenance, management and repair services under AMCs for air conditioning units are not works contract services and cannot be taxed under the composite works contract rate. Materials supplied in an AMC may be deducted under Notification 12/2003 subject to conditions, and VAT paid on the AMC can permit an exemption up to the VAT amount. (AI Summary)