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Applicability of service tax on labour contract

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This query is : Resolved

Chandra Prakash (Querist)

26 July 2013 Sir,

please sagest me, If on a government hospital construction contract, a main contractor make a contract with a sub contractor to do a work on area measurement base rate and all the material provided by main contractor than how will service tax applicable on main contractor and sub contractor.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

26 July 2013 Under S no. 12 a) of exemption not. 25/12 civil works meant predominantly for use other than for commerce, industry or business are exempted.
It could also get covered in 12 c) a structure meant predominantly for clinical establishment.
In this case Government Hospital would be a Government authority and therefore both main contractor as well as the sub contractor would be exempt. However the bills may make clear the work done for government hospital.

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