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Sub-consultants liable to pay servce tax ???

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Subhrajit

Acc. Executive+Student

53 Points Posted on 24 April 2014

FACT: We are (Registered Company) as a Consultants (Catagory-Consulting Engineer) having agreement (Principal Agreement) with Govt of Odisha (Client) to provide consultancy service to Water Resource Deptt of Odisha Govt. We provide the service through our 15-20 experts in different field with whome we have Subconsultants/subcontractors Agreement containing the period of service, terms payment. terms of termination,etc, etc. and contains nothing about Service Tax.

We are paying service tax on our invoice to Govt of Odisha ( Our Invoice consists of salary of above said esperts, vehicle exp, office operation exp, some reimbursible exp, etc,etc)

QUESTION: Whether the above said experts whose fees are well more than 10 lac per annum , need to charge Service Tax to us ?

Please answer with supporting rules of Service Tax or case laws or circulars or notifications.

Replies (1)

Harendra Kumar

Tax Advisor

1326 Points Posted on 28 April 2014

Sir,

In this regard you are providing the taxable service then you have to raised the service tax on whole or partial which are the terms & condition are applicable and also charged the service tax by your experts which are provided taxable service received by you whole or RMC, whatever conditions are applicable. Furhter you are provided the taxable service to Govt. and also received the taxable service in this regard by your experts. they are free to charge the service tax.

Those services provided by you is taxable in hand of Govt. it may be discussed further recd. by clearification in this regard by us. Read the Mega Exemption list or Negative list also. The notification under Mega Exemption is 25/2012.

You you having the more observation plz forward the same.