Works contract

Queries 281 views 2 replies

I am a sub contractor. a Government project of construction of pipelines in villages for water supply as irrigation facility is received by the contractor. Contractor has sub contract us the project. Pipelines would be supplied by the Party. On our side only machinery and diesel is used. What will be the applicability of service tax on sub contractor. Whether exempted?
 

Replies (2)
If the project is of setting up of pipeline for govt then the services are exempt. As you are sub contractor to main contractor your services are also exempt.

services provided by sub contractor to main contractor of exempt service is not exempt service tax. service tax shall be levied on normal rates. so here sub contractor is liable to service tax.


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