Is service tax applicable for sub contractor ?
This query is : Resolved
03 March 2008
One of my client deal in construction business as excavation work & hiring work.
Should client raise invoice including service tax? & what rate? His status is sub-contractor in this business and he is tax audit client.
Should client raise invoice including service tax? & what rate? His status is sub-contractor in this business and he is tax audit client.
03 March 2008
In present clarification yes even subcontractors are covered under service tax.
He may look into various option under WCT service tax provisions
Kindly keep in mind post 01/03/2008 the % of 2% has gone upto 4% other options there is no change
He may look into various option under WCT service tax provisions
Kindly keep in mind post 01/03/2008 the % of 2% has gone upto 4% other options there is no change
Arbind Aggarwal
(Expert)
03 March 2008
Sub-contracter is liable to pay service tax.
There are two schemes i.e. either pay service tax on 67% value or a flat rate of 2% (now 4% from the date to be notified.
If you pay full tax on full value then credit is also available.
arbindaggarwal@yahoo.com
There are two schemes i.e. either pay service tax on 67% value or a flat rate of 2% (now 4% from the date to be notified.
If you pay full tax on full value then credit is also available.
arbindaggarwal@yahoo.com
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