sub contractor

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 July 2010 say A has received asingle works contract
A has appointed B as sub conctractor to execute ths same work , again B has appointed C to execute the same works contract my quewry a) who is liable to pay service tax? if B or A paid the service tax
then C is also liable to pay service tax. as ultimately C is providing service?

mohinder kansal

mohinder kansal (Expert)
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25 July 2010 in this case C will raise bill on B charging service tax and C will deposit the tax to service tax deptt.
B will raise the bill on A charging service tax and pay the service tax to the deptt. after deducting the service tax charged by C on the basis of bill raised by him.
A will raise the bill on main contracted charging service tax theron and shall deposit the service tax to the deptt. after deducting service tax charged by B in the bill raised on A. ( it is assumed all parties are subject ot levy of service tax)