my client is sub contractor & received a government work contract from contractee.contractee received a contract from government.What is tax liability on sub contractor ?
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Quick Summary
This discussion clarifies the tax liability for subcontractors working on government contracts. The applicable tax rate depends on whether the service qualifies as a 'works contract'. If it does, the subcontractor is taxed at the same rate as the main contractor. If not, the standard rate of 18% applies. SAC codes 9954, points (IX) and (X) are suggested for further reference.