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Reverse charge mechanism


20 January 2015 Contractor has paid Service tax on work done by Sub contractor,

the same is taken for input credit of service tax.

Now Assessing officer is saying that the sub-contractor has to pay the service tax and contractor has to apply for refund.

Are there any provision (judgements) saying that no need to pay by sub contractor.

20 January 2015 service tax liability of sub constractor also if his receipts rs. 10 lacs or more in year.

21 January 2015 thank you sir,

yes, sub contractor receipts are greater than Rs.10 lakhs.

can u please elaborate






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