Is service tax applicable for sub contractor ?

This query is : Resolved

sachin (Querist)
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03 March 2008 One of my client deal in construction business as excavation work & hiring work.
Should client raise invoice including service tax? & what rate? His status is sub-contractor in this business and he is tax audit client.

Dayal

Dayal (Expert)
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03 March 2008 In present clarification yes even subcontractors are covered under service tax.

He may look into various option under WCT service tax provisions

Kindly keep in mind post 01/03/2008 the % of 2% has gone upto 4% other options there is no change

Arbind Aggarwal

Arbind Aggarwal (Expert)
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03 March 2008 Sub-contracter is liable to pay service tax.

There are two schemes i.e. either pay service tax on 67% value or a flat rate of 2% (now 4% from the date to be notified.

If you pay full tax on full value then credit is also available.

arbindaggarwal@yahoo.com

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