26 February 2014
We are a Public Limited Company doing equipment manufacturing at our Factory. We engage sub-contractors for doing certain fabrication activities inside our Factory and provide Material, Power, water and consumables. We issue order for Fabrication activity only. Please advise whether the sub-contractor is exempted from charging Service Tax under notification NO.ST 8/2005. If the Sub-contractor is a individual, whether our Company has to pay service tax under reverse charge mechanism. Kindly clarify urgently. Thanks….
27 February 2014
Thanks Mr.Arun for your additional information. Our is a machinery manufacturing industry and we engage subcontractors in our premises to do a part of the manufacturing activity. They engage their own people and complete the task assigned. Whether ST is exempted to this activity also. Please clarify.
CAclubindia
