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Shyam Lal Naik
( Author )
05 March 2012
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Dear Experts,
When a Goods Transport Agency sublets a part of the job to another Goods Transport Agency, how the service tax will be paid.
For example : A is a transport agent and is providing service to B. A in turn sublets part of the transport contract to C(C is also a transport agent. The parties, namely A, B & C are companies.
B, being receiver of service is liable to discharge service tax under the reverse charge mechanism. The question is, whether A will also be liable to pay service tax as receiver of service from C.
Kindly quote authority, if any.
Thank You.
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