Exemption

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CA Dishang Shah (Querist)

06 October 2012 Dear Friends,

My client is having contract with govt. bodies for construction. So he is not liable to service tax as per notification of exemption.

But my question is can he claim exemption for paying Service Tax on the services received by him for this contract??

Reply me as soon as possible with particular notification or circular.

Thank you.

Pankaj Gupta

Pankaj Gupta (Expert)

07 October 2012 If each project is divided into several sub projects and each sub project is assigned to sub contractors who provides services INDEPENDENTLY, then exemption can be claimed.
And in your question it seems that there is lack of independence for the sub contractors as they are just providing services to the main contractor. Hence exemption cant be claimed.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

07 October 2012 Only the sub contract of the work per se would enjoy the exemption. All other input services would be laible.

CA Dishang Shah

CA Dishang Shah (Querist)

08 October 2012 so if contractor enters into agreement for providing service then he can claim exemption & if only service received then he cant claim exemption.

am i right?

Pankaj Gupta

Pankaj Gupta (Expert)

09 October 2012 Yes you are right....

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