Service tax - party - contractor - sub-contractor
This query is : Resolved
01 March 2016
Sir,
Party AA give civil/painting work to main contractor MC and MC allot work to SC as sub-contract
work is under Work Contract where main contractor pay service tax 14.50 on (70% / 2) of value as reverse charge mechanism
Sir what service tax paid by main contractor and sub contractor & how
Party AA give civil/painting work to main contractor MC and MC allot work to SC as sub-contract
work is under Work Contract where main contractor pay service tax 14.50 on (70% / 2) of value as reverse charge mechanism
Sir what service tax paid by main contractor and sub contractor & how
Neljo Davis ACA
(Expert)
04 March 2016
It is assumed that the Main Contractor (MC) and the Sub Contractor(SC) not fall under the definition of Body Corporate. MC should pay service tax @ 14.5% on (70%/2) of the main contract amount. SC have to pay service tax @14.5% of 70% of the sub contract amount. MC can claim the input credit of Service Tax paid by SC.
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