Composite supply of drilling services and site specific chemicals characterised as composite supply; prior advance rulings set aside, tax rate left op...
Cross country pipeline classification and ITC entitlement: pipelines outside factory treated as immovable, ITC disallowed under Section 17 restriction...
The article addresses tax treatment of receipts under Annual Maintenance Contracts (AMCs) for A.Y. 2022-23, applying the statutory rule inserted retrospectively from 01.04.2017 that governs recognition of profits from service contracts. It explains that AMCs involve maintenance services performed through an indeterminate number of acts and that the statutory mandate requires use of the straight-line method to determine and recognise revenue over the contract tenure. The piece criticises reliance on prior intra-party precedent for an earlier year where the subsequently operative statutory framework was not considered, and concludes that the addition on AMC receipts should be deleted and revenue spread over the contract period.
The article addresses tax treatment of receipts under Annual Maintenance Contracts (AMCs) for A.Y. 2022-23, applying the statutory rule inserted retrospectively from 01.04.2017 that governs recognition of profits from service contracts. It explains that AMCs involve maintenance services performed through an indeterminate number of acts and that the statutory mandate requires use of the straight-line method to determine and recognise revenue over the contract tenure. The piece criticises reliance on prior intra-party precedent for an earlier year where the subsequently operative statutory framework was not considered, and concludes that the addition on AMC receipts should be deleted and revenue spread over the contract period.
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