09 February 2016
if contractor has received contract for road from govt which is exempted from service tax now he has subcontract this tender then subcontractor is liable for service tax
please give me any circular /notification in this regard
09 February 2016
Kindly refer Point 29 (h) of Notification No 25/2012
"sub-contractor providing services by way of works contract to another contractor providing works contract services which are exempt"
Points to be taken care of:
1. The sub contract should be in the nature of works contract (Refer clause 54 of Sec 65B Finance Act, 94) and shall not be manpower supply or other services.
2. Services of Main Contractor shall be exempt and shall also be works contract
CAclubindia
