1st Leg: X-company initially enters a contract with BWSSB (Bangalore Water Supply and Sewerage Board) which is Governmental Authority.
2nd Leg: where X-company further executes sub-contract to Y-company partially.
Questions: Here who is eligible for exemption under Service Tax under theNotification No. 25/2012-Service Tax dated- 20th June, 2012, para 12A(a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession;
Whether both dealer eligible Service Tax exemption?
Note: Contract work is underlaying pipeline. where contract agreement contains as agreement for replacement/rehabilitation does these words constitute as Original works as provided under above cited notification?
11 August 2021
29(h) sub-contractor providing services by way of works contract to another contractor providing works contract services which are exempt[Notification No. 25/2012-ST, dated 20.06.2012]
The above entry makes it clear that if the principal contractor is providing an exempt works contract service [for example providing works contract service to Government] then in such case if some part of the works contract is sub-contracted then the sub-contractor would also be exempt from payment of service tax
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