WCT AND Service Tax on Amc

[PONNADA B K RAVIKUMAR]

we are paying amc for ups , in that the service provider is charging Wct @ 4% and also service Tax @ 10.3% on the basic amt, can we pay both these taxes on the same amt, or only we have to pay service tax or wct, pls check and confirm

AI Summary

Debate on Paying Both Works Contract Tax and Service Tax for UPS Annual Maintenance Contracts: Key Points and Clarifications A discussion on a forum addresses whether both Works Contract Tax (WCT) and Service Tax should be paid on an Annual Maintenance Contract (AMC) for UPS systems. A participant suggests that both taxes are applicable: Service Tax for services provided and WCT for goods supplied or used, such as parts replacements. It is recommended to separate material and service charges on the invoice to appropriately apply VAT on the materials portion. Another participant seeks clarification on the application of WCT and the specific portions to which it should be applied.