Comprehensive Annual Maintenance contract (CAMC)

[Guest]

Dear Sir,

Our company is  going to awarded Comprehensive Annual Maintenance cost (CAMC i.e. Material plus labour cost   contract) for maintenance of Lift

Contractor is charging Vat @10% & Service tax  @10.3% on full value contract.

whether contractor is charging right tax i.e. both the taxes on full value?

Please specify section for service tax.

[Aliasgar Tambawala]

is vat being charged @ 10%?

[Guest]

VAT will be charged on material component and Service Tax will be charged on labour component.

AI Summary

Clarification Sought on Correct Application of VAT and Service Tax for Lift Maintenance Contract Under CAMC A company is about to be awarded a Comprehensive Annual Maintenance Contract (CAMC) for lift maintenance, which includes both material and labor costs. The contractor is charging VAT at 10% and Service Tax at 10.3% on the full contract value. The query seeks clarification on whether these taxes are correctly applied. One response questions the VAT rate, while another clarifies that VAT should be charged on the material component and Service Tax on the labor component.