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AMC contract management in India: covered visits, renewals and chargeable work
Annual maintenance contracts depend on knowing what is covered before a technician is dispatched. Here is how India service teams can run AMC visits, entitlement checks, renewals and GST invoicing — and what to look for in field service software.
By Upvantix team
An annual maintenance contract (AMC) is an agreement in which a service provider — often the equipment OEM, a dealer or an authorised contractor — maintains a customer’s equipment for a fixed period, usually a year, for an agreed fee. In India, AMCs come in two broad types. A comprehensive AMC, sometimes called a comprehensive maintenance contract (CMC), covers labour and listed spare parts. A non-comprehensive AMC covers visits and labour, and parts are charged separately. Consumables are often excluded either way.
Managing AMCs well comes down to five things: one contract record tied to each customer site and installed asset; an entitlement check on every service request, so the team knows whether the job is covered or chargeable before dispatch; scheduled preventive visits; response-time tracking where the contract has a service level; and a renewal process that starts well before expiry. Billing also has to follow GST rules for continuous supply of services. Field service management (FSM) software is the usual home for this work.
What an AMC usually includes in India
Indian AMCs, in private contracts and government tenders alike, tend to spell out the same terms. The Ministry of Finance Manual for Procurement of Goods (second edition, 2024, para 8.4) says the maintenance contract normally starts after the warranty period, during which the supplier maintains the goods free of cost. It may be placed with the OEM or another competent firm; an OEM-authorised service provider may need to show the OEM’s letter confirming technical and spares support.
The manual also asks buyers to state whether charges include visiting charges, spares and consumables — noting that consumables such as gaskets or bulbs are often excluded even when major parts are included — and to ask for a guaranteed price list when spares are paid separately. For complex contracts it describes a service level agreement covering uptime, a channel for service requests, response and resolution times, escalation and penalties for delays. Payment is generally half-yearly or quarterly, and a termination clause with a notice period of about one to three months is suggested.
Private B2B AMCs vary, but these are the terms a service team needs to hold for every contract.
Comprehensive versus non-comprehensive AMC
A comprehensive AMC bundles preventive visits, breakdown labour and listed parts into one fee, which gives the customer a predictable cost and moves parts risk to the provider. A non-comprehensive AMC covers visits and labour, while parts — and often consumables — are billed per job. Either type should name exclusions such as misuse, physical damage, power surges or equipment not listed in the contract.
Covered or chargeable? The entitlement decision
Many AMC disputes start when a technician does work the customer believed was covered, or when billable work is given away. Decide at intake, before dispatch. The table below is a starting point; your contract wording decides each case.
| Criterion | Comprehensive AMC | Non-comprehensive AMC | What to record on the work order |
|---|---|---|---|
| Scheduled preventive visit within the visit count | Covered | Covered | Visit number, checklist and service report |
| Breakdown call, labour only | Covered | Covered, within any visit or call limits | Call time and response time against the service level |
| Breakdown needing a listed spare part | Covered | Part chargeable; labour covered | Part, quantity, price-list reference and customer approval |
| Consumables such as filters, gaskets or oil | Usually chargeable unless listed | Chargeable | Item and whether the contract lists it |
| Damage from misuse, surge or accident | Usually excluded, so chargeable | Excluded, so chargeable | Photos, technician note and customer sign-off |
| Extra visits beyond the contracted count | As the contract states | As the contract states, often chargeable | Visit count used |
| Equipment not listed in the contract | Chargeable | Chargeable | Asset ID, with a note to add it at renewal |
| Contract expired or payment overdue | Chargeable or on hold, by policy | Chargeable or on hold, by policy | Contract status at intake |
Scheduling preventive visits
Turn the contract’s visit count — for example, quarterly preventive maintenance — into planned visits when the contract starts. Track each visit as done, missed or rescheduled, with the service report attached. Missed preventive visits are a common objection at renewal, so they need to be visible to the account owner as well as the dispatcher.
Renewals: start before the contract ends
Use the service history — visits completed, breakdowns and chargeable spend — to support the renewal quote and to decide whether a customer should move between comprehensive and non-comprehensive cover. The day counts below are a suggested rhythm rather than a rule; set yours by contract value and customer.
- About 90 days before expiry: list contracts due and pull service history
- About 60 days before: review cover type, listed assets and service levels, then prepare the quote
- About 30 days before: send the quote and agree price, scope and payment schedule
- On renewal: record the new period, asset list and visit schedule, and invoice to the payment schedule
- If not renewed: mark the contract expired so new requests are treated as chargeable, and note the reason
AMC billing and GST: the basics
General information, not tax advice. Maintenance and repair services fall under SAC 9987, which generally attracts 18% GST — CGST plus SGST, or IGST for inter-state supply — though some specific categories differ. Confirm the rate for your service with your CA.
An AMC that runs for more than three months with periodic payment obligations is a continuous supply of services under section 2(33) of the CGST Act. Where the contract fixes a payment due date, the invoice is issued on or before that due date under section 31(5). Under section 13, the time of supply for services is broadly the earlier of the invoice date, when the invoice is issued on time, and the date payment is received.
Spare parts billed outside the AMC fee may carry their own HSN code and rate, and how a mixed bill is treated depends on the facts. Confirm the treatment with your chartered accountant.
Source
What to look for in AMC management software
The aim is that the dispatcher, the technician and the accounts team see the same contract. Use this as a buyer checklist when comparing field service tools.
- Contract record linked to the customer, site and each covered asset
- Contract type, dates, visit count and exclusions held as fields, not only a PDF
- Entitlement shown at request intake: covered, chargeable or expired
- Planned preventive visits generated from the contract
- Response and resolution timers where a service level exists
- Parts and consumables captured per job and flagged covered or chargeable
- Mobile service reports with photos and customer signature
- Renewal reminders and a renewal pipeline view
- Export or integration to your accounting and GST invoicing system
AMC work is field service, not plant maintenance
AMCs are run by the service provider visiting customer sites, which is field service management. A plant maintaining its own equipment uses a CMMS. They are separate workflows and separate Upvantix products; the FSM vs CMMS guide explains the difference.
Where Upvantix fits
Upvantix Field Service Management is designed to connect service requests and work orders to the customer, site and installed equipment, with scheduling and dispatch, mobile work, digital service forms and service reports. If you run AMCs, talk to us about how your contracts, entitlement checks and visit schedules would map onto that service record.
This guide is general information as of 9 October 2026, not legal or tax advice. GST rates and rules change; confirm treatment with your chartered accountant.
Common questions about AMC contract management
What is an AMC?
An annual maintenance contract is an agreement for a service provider to maintain listed equipment for a fixed period, usually one year, for an agreed fee.
What is the difference between a comprehensive and a non-comprehensive AMC?
A comprehensive AMC covers labour and listed spare parts. A non-comprehensive AMC covers visits and labour, and parts are charged separately. Consumables are often excluded in both.
When does an AMC start for new equipment?
Usually after the warranty ends. India’s Ministry of Finance procurement manual notes that the maintenance contract starts after the warranty period, during which the supplier maintains the goods free of cost.
What GST rate applies to an AMC in India?
Maintenance and repair services under SAC 9987 generally attract 18% GST, with some category exceptions. Confirm with your CA for your service.
When should an AMC invoice be raised under GST?
An AMC longer than three months with periodic payments is a continuous supply of services; the invoice is issued on or before each payment due date under section 31(5) of the CGST Act.
How early should AMC renewals start?
Many teams start about 90 days before expiry so there is time to review service history and prepare a quote. Set the timing by contract value.
Is AMC management part of FSM or CMMS?
FSM. AMCs are run by service providers visiting customer sites. A CMMS is for a plant maintaining its own assets; Upvantix treats them as separate products.