SUB CONTRACTOR RECEIVED SCN FOR NON PAYMENT OF SERVICE TAX, Service Tax

[javed bhakhrani]

ONE OF MY CLIENT RECEIVED SCN CONTAINING AS A SUB CONTRACTOR PAYMENT RECEIVED FROM PRINCIPAL CONTRACTOR FOR CONSTRUCTION OF PETROL PUMP WORK INCLUDE 10% OF MATERIALS AND 90% IS MAN POWER. I WANT TO KNOW HOW I REPLY SCN WITH CASE LAWS.

Posts / Replies

[KASTURI SETHI]

Dear Javed Bhakhrani,

Feel free to ask any cross-query on this issue but full and true facts must be disclosed in order to get correct and concrete reply. It would be in the interest of your client.

Pl. note that I agree with the views of Sh.Amit Agrawal, Sir. So come on with true picture and full details.

[Shilpi Jain]

Also note, mere quoting of a case law may not lead to dropping of demand. So as suggested by other experts pls take professional consultation in this regard.

[KASTURI SETHI]

Yes, Madam. How to fit any case law in the reply to SCN is virtually the art of drafting which cannot be taught here. SUCH drafting is the result of one's education, experience, practice, talent etc.

[THYAGARAJAN KALYANASUNDARAM]

Dear Sir,

As per my understanding of your case, you are the sub-contractor of main contractor by providing construction service. Please check mega exemption Notification no.25/2012 dated 20.06.2012 serial no.29(h) is fully exempted.

[KASTURI SETHI]

Yes but exempted only if service provided by the sub-contractor is actually Works Contract Service. On this issue, the department has so many legal arrows in its armoury.