What is an AMC contract?

An annual maintenance contract (AMC) is an agreement where a service provider maintains a customer's equipment for a fixed yearly fee. It usually includes a set number of preventive maintenance visits and breakdown calls, and says what is and isn't covered.

What is the difference between AMC and CMC?

A non-comprehensive AMC covers labour and scheduled servicing, and the customer pays for spare parts. A CMC (comprehensive maintenance contract) also covers spare parts, except items listed as exclusions. A CMC costs more because the provider carries the risk of parts failing.

Does an AMC need to be on stamp paper?

Stamp duty on agreements is set by each state, so the rule depends on where the contract is signed. Many service companies issue the AMC as a signed quotation and work order rather than a registered agreement. Check with your CA or lawyer for your state and contract value.

How many service visits should an AMC include?

It depends on the equipment. Air conditioners commonly get 3 to 4 preventive visits a year, water purifiers 2 to 4, and medical equipment follows the manufacturer's maintenance schedule. Put the number in the contract, and space the visits evenly through the year.

When should I start the renewal conversation?

Around 60 days before the contract ends. That gives the customer time to get the renewal approved and paid before the old contract lapses, so there is no gap in cover.

AMC contract format: a sample annual maintenance contract you can adapt

An AMC contract lists the equipment covered, the contract period, the number of preventive visits and breakdown calls, what is excluded, and how renewal and payment work. The sample below covers the clauses most service businesses in India need. Adapt it to your equipment and have your lawyer review it before you use it.

Resonics Technologies · Updated 25 September 2026

What goes into an AMC contract

Clause	What to write
Parties	Your company name, address and GSTIN; the customer's name, site address and GSTIN
Contract number and period	AMC number, start date, end date (12 months is usual)
Equipment schedule	A table of every unit covered: type, make, model, serial number, location at site
Preventive maintenance	Number of visits in the period and roughly when they fall (e.g. 4 visits, once a quarter)
Breakdown calls	How many are included, or unlimited; the charge per call after the limit
Response time	How soon an engineer attends after a breakdown is reported (e.g. within 24 or 48 working hours)
Parts	Non-comprehensive: parts charged extra. Comprehensive: parts included except the listed exclusions
Exclusions	Damage from voltage fluctuation, misuse, fire or water; consumables; relocation of equipment
Charges and payment	Contract value, GST, payment terms (usually 100% in advance)
Service reports	A signed report for every visit; a copy to the customer
Renewal	How and when renewal is offered; what happens to cover if the contract lapses
Termination	Notice period and refund terms if either side ends the contract early
Signatures	Authorised signatory, name, designation and date for both parties

Sample AMC contract

Replace the text in brackets. This is a starting point, not legal advice.

ANNUAL MAINTENANCE CONTRACT No. [AMC-0042]

This contract is made on [date] between [Your company name], [address], GSTIN [number] ("the Service Provider") and [Customer name], [site address], GSTIN [number] ("the Customer").

1. Period. This contract runs from [start date] to [end date], both days included.

2. Equipment. The contract covers only the equipment listed in Schedule A, identified by serial number.

3. Preventive maintenance. The Service Provider will make [4] preventive maintenance visits during the period, spaced roughly [3] months apart, on dates agreed with the Customer.

4. Breakdown calls. The contract includes [4 / unlimited] breakdown calls. Calls beyond this limit will be charged at ₹[amount] per visit. The Service Provider will attend a reported breakdown within [48] working hours.

5. Spare parts. [Non-comprehensive: Spare parts are not included and will be charged at the rates quoted at the time of replacement.] [Comprehensive: Spare parts are included, except the items listed in Schedule B.]

6. Exclusions. The contract does not cover damage caused by voltage fluctuation, misuse, accident, fire, water, or repair by any other party, nor consumables and relocation of the equipment.

7. Service reports. Every visit will be recorded in a service report signed by the Customer's representative, and a copy given to the Customer.

8. Charges. The contract value is ₹[amount] plus GST, payable in advance.

9. Renewal. The Service Provider will send a renewal offer before the end date. If the contract is not renewed by the end date, cover ends on that date.

10. Termination. Either party may end this contract with [30] days' written notice. [Refund terms.]

Signed for the Service Provider: [name, designation, date] · Signed for the Customer: [name, designation, date]

Schedule A: Equipment covered · Type · Make · Model · Serial no. · Location

AMC or CMC: which to offer

	AMC (non-comprehensive)	CMC (comprehensive)
Labour and visits	Included	Included
Spare parts	Charged extra	Included, except exclusions
Price	Lower	Higher
Your risk	Low	A failed compressor or board comes out of your margin
Suits	Newer equipment, price-sensitive customers	Older equipment, customers who want one fixed cost

Where AMCs lose money after they are signed

Visits that never happen. The customer paid for four and got two. They won't renew, and they will say so to others.
Breakdown calls nobody counts. The contract says four, the engineer attends nine, and nobody bills the extra five.
Renewals nobody chases. The contract ends in March, the customer calls in May with a breakdown, and now you are negotiating from behind.