Taxes on warranty services & annual maintenance contract, Service Tax

[Akhilesh Yadav]

Hi, What will be tax applicable on warranty services provided on any product? What will be tax applicable on annual maintenance contract (AMC)?

Posts / Replies

[pradeep khatri]

On the AMC contracts, VAT/CST (as the case may be) will be applicable.  Further, AMC Contract will also attract Service Tax on the Services Portion only ,if , the proper records are maintained accordingly.

If the warranty services are free of cost, then, service tax will not be applicable otherwise it is applicable.