Aditya Sharma (finance advisory) (377 Points)
31 December 2016WORK CONTRACT SERVICE IS TAXABLE UNDER SERVICE TAX.
SUPPOSE A WORK CONTRACT ( CONSTRUCTION OF BUILDING) (BY A BUILDER) IS SUB-CONTRACTED TO A SUB - CONTRACTOR.
THAN WHO IS LIABLE TO PAY S.T. ??---THE BUILDER OR THE SUB - CONTRACTOR??
(IT IS A WORK CONTRACT AS IT INCLUDED SUPPLY OF MATERIAL + SERVICES.)
VIKASH SINGH
(ARTICLE)
(92 Points)
Replied 31 December 2016
Mukesh Kumar
(Accounts Manager)
(1466 Points)
Replied 04 January 2017
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 04 January 2017
If sub contractor is only a labour contractor then over the Rs. 10 Lakhs limit if eligible liable to pay ST.
In other cases where the SC is a wct then liable beyond small service exemption limit ofRs. Laksh. 50% liability if individual, firm etc. Balnace 50% payable by the contractor.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 04 January 2017
If sub contractor is only a labour contractor then over the Rs. 10 Lakhs limit if eligible liable to pay ST.
In other cases where the SC is a wct then liable beyond small service exemption limit ofRs. Laksh. 50% liability if individual, firm etc. Balnace 50% payable by the contractor.
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