please sagest me, If on a government hospital construction contract, a main contractor make a contract with a sub contractor to do a work on area measurement base rate and all the material provided by main contractor than how will service tax applicable on main contractor and sub contractor.
26 July 2013
Under S no. 12 a) of exemption not. 25/12 civil works meant predominantly for use other than for commerce, industry or business are exempted. It could also get covered in 12 c) a structure meant predominantly for clinical establishment. In this case Government Hospital would be a Government authority and therefore both main contractor as well as the sub contractor would be exempt. However the bills may make clear the work done for government hospital.
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