Sub contract on govt tender

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JAY PRAKASH PATIDAR (Querist)
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23 June 2013 Dear sir

My client is carry on business of construction, he taken sub contract for construction of warehouse under govt. scheme.original contract (tender) received by other and than taken sub contract from this.
what is the tax implication for subcontract or its exempted for service tax and vat because he work for govt indirectly.

Ankit Gupta

Ankit Gupta (Expert)
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24 June 2013 Kindly refer item no. 29 (h) of mega exemption

JAY PRAKASH PATIDAR

JAY PRAKASH PATIDAR (Querist)
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24 June 2013 THANKS SIR JI. BUT SALES TAX KA KYA HOGA.

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CA. C V SURYAM

CA. C V SURYAM (Expert)
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27 June 2013 Of course Sl. No.29(h) gives exemption to SCs if main contractor has been awarded an exempt work and if SC also falls under WCS category. However, here it is to be seen whether construction of Godown in favour of Govt. is exempt or not just because it has been awarded by Govt. it cannot be taken as granted. We need to see the agreement between MC and Govt.