sub-contractor

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shrikant

self

63 Points Posted on 20 August 2009

client "P" entrusts a commercial construction project to a contractor, "A".

the contractor "A" outsource a part of the project to another person "B" (a sub-contractor)

The sub-contractor further gives part of his work to yet another sub-contractor "C".

Now, questions are as follows,

Whether "C" and also "B" are required to discharge service tax on their part of taxable service?

If so,

whether B and A can avail CENVAT facility of service tax paid by C and B respectively

Replies (2)

CA pradeep sultania

direct and indirect taxation

24 Points Posted on 20 August 2009

Firstly we have to see under which category the construction work is executed

so that the particular service is eligoble for input credit

Sub Contractor Down the line are eligible for charging the service tax to the contractors and contractors are eligble for taking the cenavt credit provided the commercial construction should be under works Contract Service or 10/2003 notifiaction or no abatement under the CICS................