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

[NANDKUMAR SAGWEKAR]

Dear Mr. Ponnada I think you have to pay the both taxes . 01. Service tax under the category of Maintenance or Repairs - however here service provider can charge only for services and not for material used / provided for provision of service. He can take the benefit of notification of 12/2003 S.T. dt 20-06-2003. 02. While providing of services under AMC if the goods are supplied , provided or used say your AMC is inclusive of replacements of parts of UPS or used of distilled water or changing of electrical cables etc. here property of goods has been transferred to you , is the fit case for charging the VAT ( WCT ) . How ever he can charge the VAT ( WCT ) by making bifurcation on invoice itself of Materials and Service Charges and charge VAT on Materials portion. This is my opinion for correct interpretation see related ACTs, Rules, Notifications etc Thanks ANAND SHEMBEKAR CELL NO 9209904370

[jata tiwari]

when wct applicable

[jata tiwari]

could you pls write when wct applicable & on which portion we would charge wct in single bill

AI Summary

Service tax and VAT applicability: both may apply to AMC; invoice must bifurcate materials and service for correct taxation.
Both service tax and VAT/WCT can apply to an AMC: service tax on the maintenance/repair service component (subject to notification benefits) and VAT/WCT on any material portion where property in goods is transferred; the supplier should bifurcate invoice charges into materials and services and impose VAT/WCT only on the materials portion.