Rakesh Bandal
(Self Employed and Agriculture)
(1349 Points)
Replied 08 January 2018
as per my knowledge
section 5 of CGST Act specifically used wordings of Contact
and as per section 2 (119) Works contract does not include sub contractor
Hence Sub contractor have to charge 18% instead of 12% (Applicable to govenment contract)
Umesh V Naig
(Statutory Analyst)
(452 Points)
Replied 09 January 2018
if you are meaning service tax regime ie before GST , please take a reference to Circular No 147/16/2011 -Service Tax dated 21.10.2011 where is back to back sub contract is also considered as govt work and rates are chargeable accordingly.
But after GST subsumed all the earlier indirect laws , there is no such circular and the Govt sub contract rate has been changed from 22.8.17 to 12% only
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