02 August 2010
XYZ is a Charitable trust, which runs a pharmaceutical college.It has awarded a contract for construction of new college premises to kfc construction co ltd.KFC has taken the contract. However, it has broken the contract and awarded several sub contracts.My client is awarded the entire electrical contract by KFC Ltd. Whether in such case, my client should collect service tax from KFC Ltd?KFC Contends that the final authority that benefits from contract is XYZ, which is a charitable org, no service tax arises. Pls help.
CAclubindia
