The main contractor is doing Govt contract. and the contact is being done from the sub contractor. the full contract is completed by the sub contractor. As the main contractor is doing govt work he is exempted. Then whether sub contractor is also exempt from Service tax? and If instead of full contract partial contract is subcontracted whether the tax liability differ? Please help.
09 September 2012
Yes, sub-contractor providing services by way of works contract to another contractor providing works contract services which are exempt;
It is important to note that sub-contractor of the "works contract" only is exempted. The Government contracts which are not in the nature of works contract and executed by sub-contractor are taxable
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