Applicability of service tax in the case of AMC, Installation and commissioning of Genset product

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..... Applicability of service tax in the case of AMC, Installation and commissioning of Genset product
Query (Issue) Started By: - dhanesh tk Dated:- 11-12-2010 Last Reply Date:- 13-12-2010 Service Tax .....

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Service Tax
I need a solution for the appliability of service tax. My client is ,a authorized dealer of Mahindra & Mahindra Ltd (M&M),doing installation, commissioning and mainta .....

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..... nces of Genset product manufactured by the M&M.Total amount paid by M&M is Rs.1650/-, and my client billed Rs.825/- as labour charges (add service tax @ 10.3%) and Rs.825/- as sales (including VAT @ 1 .....

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..... 2.5%).That is total amount split for service and sale in the ratio of 50:50. My doubt, is this tratment is correct or not? Dhanesh.tk Reply By CHITRA RAGURAM: The Reply: Ur treatment of applicabilit .....

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..... y of Service Tax 10% on service charge and VAT 12.50% on the product is correct. But the bill should be raised on actual basis and not 50:50 basis. If you supply a spare on maintenence of the Genset .....

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..... then VAT is applicable or if you only provide service alone, ST is applicable.
Discussion Forum - Knowledge Sharing .....

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