New User / Register | Annual Subscription | SMS Option | Feedback |
Login: Stay
| Forget Password |
Tax Management India .com
             
TMI - Tax Management India. Com

 
Discussions Forum
Home Forum Service Tax Month 2 2012 2012 (2) This
← Previous Next →
 

Sub contractor liability on service tax. - Service Tax

 
Issue Id: - 3830
Dated: -18-02-2012
By:- JIMUTA SAHOO
Sub contractor liability on service tax.

Where the main contractor and sub-contractor both are invoved in same contract. In this case whether main contractor is liable to pay service tax.

Post Reply
 
Previous Posts
 


Dated: - 19-02-2012
By: - rakshit verma

In this regard, pl.see service Tax Circular dated 06.5.2011.Both are liable to pay service tax. However, main contractor may avail cenvat credit of service tax paid by sub-contractor on services rendered by him

 

Rakshit Verma

Advocate




Dated: - 19-02-2012
By: - raj kumar shukla

But Nofn.1/2006 does not permit cenvat credit?




Dated: - 27-02-2012
By: - vijay kumar

As per CBEC Circular dt. 23.8.2007, if part of the work is entrusted to sub-contractor, the service tax paid by the sub-contractor can be taken as credit by the main contractor since it is an input service for him. However, if the entire work is entrusted to the sub-contractor, the entire service stands rendered by the sub-contractor and he shall be liable to pay the tax and the main contractor cannot take the credit since he doesn't provide any output service. As regards Nofn.1/2006-ST, if it is a case of part work done by the sub-contractor, credit can be taken by the main contractor but the service tax has to be discharged without availing the benefit of abatement under the said notification.


 
 
Previous Next

 

what is new what is new




© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.