Query regarding applicability of service tax

Save Share

This query is : Resolved

Chandra Prakash (Querist)

17 September 2013 Dear sir,

Please help me to know the applicability of service tax in following case :-

ABC Ltd.(contractor) make a contract with government Agency
(contractee) to construct a hospital. Now ABC Ltd (contractor) make
further contract to sub- contractor like labour contractor (eg. X) to
provide the labour on construction site, other sub contractor (Y) to
work on site at measurement based labour rate, sub contractor (Z) to
work on site with material i.e. work contract, and Security Agency to
guard the construction site.

As per my knowledge of service tax M/s ABC Ltd. i.e. main contractor
is exampt from service tax as per Para 12(c), and sub contractor (Z)
is also exampt as per Para 29 (h) of service tax. but my question is

(1) Should service tax Applicable on Sub Contractor (X), (Y) and
Security Agency.

(2) Should Reverse charges Applicable on M/s ABC Ltd. i.e. main
contractor in case of labour supply contractor, security service ,
Jobwork and work contract.

--
thanks & regards,
chandra prakash
9718437267

GN Patankar

GN Patankar (Expert)

20 September 2013 Service Tax will be applicable in the above cases, RCM would be applicable if service provider is Individual ,HUF & receiver is Pvt Ltd Or Ltd Co. RCM 75% for security & manpower supply & 50% for Works Contract.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now