Service tax - party - contractor - sub-contractor

This query is : Resolved

AK123 (Querist)
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01 March 2016 Sir,

Party AA give civil/painting work to main contractor MC and MC allot work to SC as sub-contract
work is under Work Contract where main contractor pay service tax 14.50 on (70% / 2) of value as reverse charge mechanism
Sir what service tax paid by main contractor and sub contractor & how

Neljo Davis ACA

Neljo Davis ACA (Expert)
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04 March 2016 It is assumed that the Main Contractor (MC) and the Sub Contractor(SC) not fall under the definition of Body Corporate. MC should pay service tax @ 14.5% on (70%/2) of the main contract amount. SC have to pay service tax @14.5% of 70% of the sub contract amount. MC can claim the input credit of Service Tax paid by SC.