We have taken a sub-contract for a work contract. We supplied few materials at the site location, and we have raised bill for the supplied material to the main-contractor. Do we need to collect the service tax on the supplied material or not?
09 October 2010
If the awarder has supplied the goods on the strength of a sales invoice to the contractor, no need to levy service tax. If materials are supplied free of cost, the contracor has to charge service tax on the material cost also even though supplied free of cost.