Please help me to know the applicability of service tax in following case :-
ABC Ltd.(contractor) make a contract with government Agency (contractee) to construct a hospital. Now ABC Ltd (contractor) make further contract to sub- contractor like labour contractor (eg. X) to provide the labour on construction site, other sub contractor (Y) to work on site at measurement based labour rate, sub contractor (Z) to work on site with material i.e. work contract, and Security Agency to guard the construction site.
As per my knowledge of service tax M/s ABC Ltd. i.e. main contractor is exampt from service tax as per Para 12(c), and sub contractor (Z) is also exampt as per Para 29 (h) of service tax. but my question is
(1) Should service tax Applicable on Sub Contractor (X), (Y) and Security Agency.
(2) Should Reverse charges Applicable on M/s ABC Ltd. i.e. main contractor in case of labour supply contractor, security service , Jobwork and work contract.
20 September 2013
Service Tax will be applicable in the above cases, RCM would be applicable if service provider is Individual ,HUF & receiver is Pvt Ltd Or Ltd Co. RCM 75% for security & manpower supply & 50% for Works Contract.
CAclubindia
