Contractors

This query is : Resolved

Priyanka Jain (Querist)
Follow

23 July 2013 I m working in a construction Firm..Having projects of Indore Devoplment Authority.We are having many petty contractors working for us.Whether Service tax is applicable on petty contractors. whether petty contractors are liable to collect to service tax from us.Please give full detail on this topic.
To which limit they are Exempted..
If the main contractors is providing service which are exempted then they still collect service tax

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

23 July 2013 yes. in case sub contractors/petty contractors covered under service tax, they need to charge and collect the service tax on their bill on your company and the same service tax can be taken as input credit for your service tax payments