Service Tax Liability on Person working on Full Time Basis

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This query is : Resolved

Sharender (Querist)

01 July 2008 Please let me know the implication of service tax (if any) on a Person having qualification of BSC (Civil Engg) working on contract terms(8.5 hours per day) with company engaged in Consulting Engineering Services and looking after general business development and co-ordination, supervision and control of various projects undertaken by company, however he does not give any direct input to any of the project as consultant. What would be the position of service tax, if such consultant is directly working on the project and is directly monitoring/executing the projects undertaken by the company.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)

01 July 2008 As long as there is no employer employee relation ship can not be established, the person will be deemed to render service liable for service tax.

Sharender

Sharender (Querist)

01 July 2008 I would like to invite your attention to to departmental circular F. No. B43/5/97-TRU dated 2/7/97 wherein subconsultant/associate consultant are exempted. Though there is amendment in clause 31 of section 65 and word client has been replaced with any person. In view of this can such person take advantage of the above circular for last financial year.

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