Rate of tax on sub contractor

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 ?
Replies (2)
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.

You can check SAC 9954 and point (IX) and (X), which will suitable for you.
If works contract definition satisfied, same Rate as applicable to main contractor, else 18%.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
28 October 2026
Assistant Director/ Associate Director-Finance & Accounting

Krea University

Chennai

CA

View Details
Company
Featured ARTICLESHIP 31 October 2026
CA Articleship

apricus india

Navi Mumbai

CA Inter

View Details
Company
23 October 2026
Sr. Accountant

SANKARAN & KRISHNAN

New Delhi

B.Com

View Details
Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details
Company
Featured 07 November 2026
Paid Assisstant

DPV & Associates

Chennai

CA Inter

View Details
Company
30 October 2026
Asst Manager Accounts

Goodwin Pumps India Pvt Ltd

Chengalpattu

CA Inter

View Details
Company
31 October 2026
Accountants

sankaran and krishnan

New Delhi

B.Com

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details