Service tax paid by the contractor

Originally posted by : JAYS
	Respected tax consultants, we are the sub contractor of a large construction company dealing in the residential appartments project. As per rule the ST was supposed to be charged by us in the bill and then to deposit in the govt. a/c. However as per the contract all the taxes including the WCT, TDS and also the service tax was paid by the main contractor. The problem  now is the Service tax department is not considering it and they have sent a notice to us stating that you need to deposit the same amount of ST with your Service tax no. Your kind response will be highly appreciated. Jays...

Hi Jay,

in such case you suppose to pay service tax, but there is also a concept called no double tax on a single income. Before going to this option that you make sure whether opposite party did payment on bahaf of you.

thanx vijay for sharing your suggestion...

yes you are right that there will be no double taxation on a single income..Also the main contractor has categorically given in writing on his letterhead stating that so and so amount of srvice tax has been paid by us. he has also provided us the challans for the same, however the problem is the challan includes the ST deposited of ours company including others, i.e. no separate challans has been generated bill wise..

And this is where the matter gets stuck...