Sub contract

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This query is : Resolved

RAHUL SHAH (Querist)

22 June 2013 service tax is applicable or not for sub contract??
Detail:
contractor has taken civil work from government and than sub late to other contractor.
he is receiving payment from govt which is tax free on his own name and sub contractor is need to raise bill to the main contractor.
whether he should charge s.tax or not?

Rupesh Jain

Rupesh Jain (Expert)

22 June 2013 SERVICE TAX CHARGE AS CIVIL CONTRACTOR

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RAHUL SHAH

RAHUL SHAH (Querist)

22 June 2013 Expert Rupesh Jain.
okay.
but main contractor is exempt from charging s.tax as work is of govt.
still subcontract is required to charge s.tax to main contractor??

CA Rinkal

CA Rinkal (Expert)

22 June 2013 it does not matter whether main contract is exempt or taxable...

in this situation sub contract is liable for service tax

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RAHUL SHAH

RAHUL SHAH (Querist)

22 June 2013 Thanks expert CA Rinkal.

Will you pls specify the s.tax rate for the same.!

CA. C V SURYAM

CA. C V SURYAM (Expert)

23 June 2013 The work awarded by Govt. is exempt in the hands of main contractor if falling under the entries of Notification No.25/2012-ST dt.20/06/2012. In such case, if sub-contractor is also classified as works contractor by virtue of this sub-contracted work (i.e, there must be transfer of property and vAT paid), then the sub-contractor will also be exempt as per Entry No.29(h) of the said notification.

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