https://www.taxtmi.com/forum/issue?id=106780 Annual maintenance contracts for repair and modification are treated as Works Contract Service with taxable value at 70% of invoiced charges when no input CENVAT credit has been claimed. Under the reverse charge mechanism the service tax is apportioned equally: the provider pays fifty percent and the service receiver pays fifty percent of the tax computed on 70% of the charges. The service receiver who pays tax under reverse charge may claim CENVAT credit for the tax it has paid and use it against output duties or service tax, subject to the CENVAT Credit Rules. en-us Wed, 07 May 2014 11:19:52 +0530 Thu, 23 Jan 2025 15:57:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=106780 Annual maintenance contracts for repair and modification are treated as Works Contract Service with taxable value at 70% of invoiced charges when no input CENVAT credit has been claimed. Under the reverse charge mechanism the service tax is apportioned equally: the provider pays fifty percent and the service receiver pays fifty percent of the tax computed on 70% of the charges. The service receiver who pays tax under reverse charge may claim CENVAT credit for the tax it has paid and use it against output duties or service tax, subject to the CENVAT Credit Rules. Discussion-Forum Service Tax Wed, 07 May 2014 11:19:52 +0530 https://www.taxtmi.com/forum/issue?id=106780