Sub sub contractor rate of tax

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This discussion clarifies that the concessional tax rate on works contract services provided to the government is indeed applicable to sub-subcontractors. While some publications suggest otherwise, the prevailing view, supported by an Advance Ruling from AAR Maharashtra (Shree Cement, 2018), indicates that if the nature of work performed by the sub-subcontractor is the same as that of the main contractor, the concessional rate should apply.

akhil sai

akhil sai (Querist)

15 August 2020 whether concessional rate of tax on works contract services to govt applicable to sub-sub contractor

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 August 2020 Yes concessional rate applicable.

akhil sai

akhil sai (Querist)

15 August 2020

sir, Thank you for your opinion. But the thing is in
taxmann's GST on Works Contract and Real Estate Transactions book the author written as " The concession is only to sub-contractor and not to sub-sub-contractor. Sir can you give any reference.

Lekhraj sood

Lekhraj sood (Expert)

15 August 2020 What is the nature of works contract being carried out.

akhil sai

akhil sai (Querist)

15 August 2020 railway contract sir leveling of land & construction of tunnel.

Lekhraj sood

Lekhraj sood (Expert)

15 August 2020 The concessional rate would be applicable.Refer Advance ruling of AAR Maharashtra in the case of Shree Cement dated 11.7.2018 where in it was decided that since the nature of the work done by the sub-contractor is same, the concessional rate is available to sub-contractor.
On the same logic it should also be available to sub-sub-contractor.

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