Dear Friend,
I wann to check weather service tax is applicable on sub-contractor.I have an doubt becouse for similar type of work main contractor does not charges any service tax.on his bill raised by him on ultimate party.For eg. There is an Co.A issues tender(work related to natural gas distribution i:e laying and instullation work in states like Delhi,Noida,Gujrat etc) and allote work to Co. B .But Co. B.Further sub let the work to Co. C.Now when Co. A Makes Payment to Co. B it does not make any payment of service tax.As it charges only WCT @ 2.5% .My doubt is if this work is done by Co.C (Sub contractor) wether or not it should chrg service tax.
CAclubindia
