Service tax on AMC a composite contract - where WCT (VAT) is paid on certain portion

[Shiv Thakur]

we are providing Comprehensive AMC service to Diffrent oil company. Under the CAMC we use spare parts without cost in diffrent state in india. So we pay Work Contract Tax to diffrent state becasue state goverment say to 'Deposit all WCT amount on your selling price of the item' but when we rasie Invoice for CAMC we charge service Tax 10.30% on total invoic value. now we want to charge servcie tax on only 40% of invoice value. and further we want to charge WCT amount which we pay to Diffrent State Goverment on Invoice. finally we want to charge WCT amount to our customer as WCT is a statutory dues.

AI Summary

Company Seeks Advice on Service Tax and Work Contract Tax; Considers Notification 12/2003 and Tribunal Decision on Charges A company providing Comprehensive Annual Maintenance Contracts (CAMC) to various oil companies in India is seeking advice on service tax and Work Contract Tax (WCT). They pay WCT to different states and charge a 10.30% service tax on the total invoice value but wish to charge service tax on only 40% of the invoice. They also want to charge customers the WCT amount paid to states. One response suggests reviewing notification no. 12/2003 for possible exemptions, while another advises charging service tax on only 40% if WCT is paid on 60%, referencing a tribunal decision.