Work contract service tax under composition scheme &

This query is : Resolved

Magesh (Querist)
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28 September 2012 Dear Sir,

Our water treatment(Government Bwss) construction project is going on our Karnatak – bangalore, we are in a pricipal contract, the Civil work the value 60 crores work we are provided to Sub contractor to do the work,

We are under the composition scheme, the sub contractor has been started from 10.6.2010 and completed the work from 30.09.2012,

Now the sub contractor his request us to release the service tax amount along with the interest and penalty,

MY QUESTION IS

1.This is a government project any exemption is there are not, if yes means request you to please provide the details

2.Would be able to claim cenvat cerdit of service tax paid to sub contractor and can set-off the same against the output service tax liability,

3.What we should do any one please suggest us

Regards,
s.magesh

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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01 October 2012 The services provided to the local authority [ bwssb should be one] in relation to pipeline, conduit or plant for water treatment is exempted vide sl no.12 of Not 25/12 [ mega exemption]

Whether that service is provided by the main contractor or sub contractor would not matter.

As long as sub contract is for the same work exemption canbe claimed.