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Service provided by sub contractor to main contractor


Aditya Sharma (finance advisory)     31 December 2016

Aditya Sharma
finance advisory 
 12 likes  372 points

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WORK CONTRACT SERVICE IS TAXABLE UNDER SERVICE TAX.

SUPPOSE A WORK CONTRACT ( CONSTRUCTION OF BUILDING) (BY A BUILDER) IS SUB-CONTRACTED TO A SUB - CONTRACTOR.

THAN WHO IS LIABLE TO PAY S.T. ??---THE BUILDER OR THE SUB - CONTRACTOR??

(IT IS A WORK CONTRACT AS IT INCLUDED SUPPLY OF MATERIAL + SERVICES.)

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VIKASH SINGH (ARTICLE)     31 December 2016

VIKASH SINGH
ARTICLE 
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Both are liable for Sevice Tax and service tax charged by main contractor is eligible for Cenvat to sub contractor

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Mukesh Kumar (Accounts Manager)     04 January 2017

Mukesh Kumar
Accounts Manager 
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BOTH ARE LIABLIE TO PAY SERVICE TAX AND VAT AS PER THEIR WORK DONE VALUE, AND ALSO AVAIL TO CENVAT CREDIT OF INPUT SERVICE TAX AND VAT

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Madhukar N Hiregange (Chartered Accountant)     04 January 2017

Madhukar N Hiregange
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If sub contractor is only a labour contractor then over the Rs. 10 Lakhs limit if eligible liable to pay ST.

In other cases where the SC is a wct then liable beyond small service exemption limit ofRs. Laksh. 50% liability if individual, firm etc. Balnace 50% payable by the contractor. 

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Madhukar N Hiregange (Chartered Accountant)     04 January 2017

Madhukar N Hiregange
Chartered Accountant 
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If sub contractor is only a labour contractor then over the Rs. 10 Lakhs limit if eligible liable to pay ST.

In other cases where the SC is a wct then liable beyond small service exemption limit ofRs. Laksh. 50% liability if individual, firm etc. Balnace 50% payable by the contractor. 


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