Subcontracting

This query is : Resolved

Subodh Kumar Goel (Querist)
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23 April 2014 If for example Mr X receives a contract for map designing of Rs. 10,00,000.00 on which he has paid service tax @12.36%. He has sub contracted the said work of Rs. 5,00,000.00 to Mr Y. Is Mr. Y liable to pay service tax on rs. 5,00,000.00 as Mr. X has paid service tax on full amount.

Secondly, if Mr. y is not liable to pay service tax on same whether the said amount will be included in the service tax return

Rupesh Jain

Rupesh Jain (Expert)
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23 April 2014 yes service tax will pay by MR. y if his gross sale/receipts exceeds rs. ten lacs in year. and Mr x can take credit for the same.

other wise MR. X not show the bill of Mr Y in his return.

Subodh Kumar Goel

Subodh Kumar Goel (Querist)
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23 April 2014 Is Service Tax chargeable on Sub Consultant appointed by main consulting engineer? if no then the Sub Consultant has to file Service tax return or not

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KUMAR trp707@gmail.com

KUMAR trp707@gmail.com (Expert)
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24 April 2014 SUB CONTRACTOR EXCEEDING RS 10 LACS HE CAN PAY AND FILE STAX RETURNS

OTHER WISE NOT EXCEEDING 10 LACS NOT REQUIRED S TAX & RETURNS.

MR Y EXCEED 10 LACS PAY STAX AND FILE ST3 RETURNS?

MR X CAN GIVE S TAX TO Y AND TAKE CREDIT FOR Y PAID S TAX AS A CENVAT CREDIT.