Subcontracting in works contracts
This query is : Resolved
vinodkumar.
(Querist)
06 February 2008
Dear sir
our client is a works contractor. They undertakes major works and some part of the work is subcontracted. Main contractor collects whole amount from the contractee and also collect service tax from the contractee for the whole contracted amount. The subcontractor claims service tax on the bill raised by him.Is there any remedy to avoid the payment of service tax to the subcontractor.
our client is a works contractor. They undertakes major works and some part of the work is subcontracted. Main contractor collects whole amount from the contractee and also collect service tax from the contractee for the whole contracted amount. The subcontractor claims service tax on the bill raised by him.Is there any remedy to avoid the payment of service tax to the subcontractor.
vinodkumar.
(Querist)
06 February 2008
vinodkumar.
(Querist)
06 February 2008
Dear sir
our client is a works contractor. They undertakes major works and some part of the work is subcontracted. Main contractor collects whole amount from the contractee and also collect service tax from the contractee for the whole contracted amount. The subcontractor claims service tax on the bill raised by him.Is there any remedy to avoid the payment of service tax to the subcontractor.
our client is a works contractor. They undertakes major works and some part of the work is subcontracted. Main contractor collects whole amount from the contractee and also collect service tax from the contractee for the whole contracted amount. The subcontractor claims service tax on the bill raised by him.Is there any remedy to avoid the payment of service tax to the subcontractor.
S.Srinivasaraghavan
(Expert)
07 February 2008
If the subcontractor is a service provider within the ambit of services notified, there is no way he can avoid rasing the bill with service tax.
07 February 2008
The master circular clearly identifies the sub contractor as a service provider, we do not forsee any remedy in the said inquiry
05 April 2012
You have to pay service tax. There is no option available.
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