Hi, good morning & happy Holi to all experts, the question is a labor contractor has fail to collect service tax form those builders to whom he use to supply labour for new plumbing works, due to old work order where service tax clause was not mentioned, hence the builder denying to pay service tax to the said contractor and now the contractor turnover crossed the limit of audit.
We have advised him to collect and pay the service tax 100% on provided service, but he is not ready to pay service tax and he is standing with his own question, that, why he should pay the tax when he has not collected tax from any service received to whom he supplied labour for the above mentioned work, which is not appropriate according to us.
I’m seeking your valuable inputs.
Thanks in advance for your valuable answer and suggestions
Regards
Swopna
CAclubindia
