31 August 2009
If main contracor opted for composition and paying taxes on Gross value of the work.If part of the work given to sub-contractor morethan 10 lakhs for each sub-contractor.Then what is the liability of sub-contractor. Kindly clarify
The Sub-contractor is liable to pay service tax on the realisation of his services by the main contractor. Sub-contractor is at liberty to chose his method of discharge (composition or non-composition). The method of discharge followed by the main contractor does not affect the sub contractor in case of service tax liability.
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