Servie tax on manpower supply subcontract.

Queries 442 views 1 replies

In A Company, Main Contractor Having 6-7 Sub Contractors To Execute Work As Packing/Loading /Unloading/Labour Supply.In View Of New Ammandments In Service Tax Rules,100% ST Shall Be Paid By The Company And Contractor Is Not Liable To Pay Or Collact ST From Company.Now Question Is That Main Contractor Is Providing Service To The Company For Which Company Is Paying Service Tax,And Subcontractors Are Providing Service To Main Contractor,Main Contractor Has Already Claimed Gross Payment Of Sub Contractors From The Company On Which Company Has Paid ST.In This Case, Is Their Any Liability Arrises On Main Contractor To Pay Service Tax On Subcontractors Payments Maid By Him ?

Replies (1)

Dear Mr Singh

The liabilty depends on the status of Main contratcor and sub contractors (i.e whther company or other?

If Main contractor is company and sub contratcors are other than company then main contractirs needs to discharge ST under reverse charge


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