Service Tax On contract of ESIC Hsopital Building

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 May 2011 I have query as under

One of my client has taken labour contract which is in nature of Sub Contract for construction of ESIC hospital building. I have the following query;

1) Whether service tax is applicable in respect of contract for construction of ESIC hospital building. The contract is for labour charges only. Material will be supplied by client, i.e. (ESIC Department).

2) As per the ESIC Department they are exempted from service tax. Whether this exemption will be applicable to Sub Contractor also.

3) Also I would like to know whether my client is liable to registered under MVAT whether all the contract are of Labour only.

Thanks in advance.

CA Unnikrishnan Nair N

CA Unnikrishnan Nair N (Expert)
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30 May 2011 ESIC hospital building is not for commercial purpose and hence no service tax . No service tax on sub-contract as well. If it pure labor contract,there no vat liability.