we are sub-contractor to the main contractor. The main contractor is under composition scheme. We are also under composition scheme.
The main contractor receives the payment from govt department and deposits service tax on the same.
After deducting taxes like service tax , Vat , Income tax, Labour cess and his profit, the main contractor releases the payment to us.
As per the contract the main contractor is liable for all taxes and duties towards the government.
The payment we receive is the one on which Main contractor has already deposited service tax.
Under the act weather the service tax is to be paid again or not by the sub-contractor.
CAclubindia
