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Service tax query (related to subcontractor)

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Vardaan Gupta

Article

48 Points Posted on 15 July 2014

we are a construction company & have sub-contracted our work to a sub contractor now the ques is :

Ques: No service Tax is being charged by the sub-contractor as they are not registered with service tax. We have paid around 8 lacs to some contractor during 13-14 & deducted TDS from them but they have not got themselves registered with service tax. Can we be held responsible for this ? and what all implications are there in the given case ??

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Himanshu

Article

33 Points Posted on 15 July 2014

as per notification 33/2012- ST, Any Service provider whos turnover is not exceeding rs 10,00,000 in the previous year, shall not have to pay service tax. as if your sub contractor is only providing services to you and his turnover being only rs 8,00,000 he need not to get himself registerd under service tax. and you have deducted TDS on Contractos so you are not liable to anywhere. further for any clarification, please let me know.