kajal c. mehta (practice) (65 Points)
16 August 2010service tax applicable on sub contractor if main contractor is under obligation of service tax ??? i.e. if x is main contractor for building commercial complex rs. 50,00,000 n give sub contract to mr. y of Rs. 25,00,000 then Mr.y is liable to charge service tax to mr.x & mr.x can get credit of it??
CA Amit Kanani
(Practicing CA)
(338 Points)
Replied 17 August 2010
No. Subcontractor is independent contractor himself. His servicetax liability is not depend on Maincontractor. If subcontractor is liable for servicetax as per servicatax laws i.e.finance act 1994, then and then only he has to collect servicetax from maincontractor. Maincontractor is his normal client only. Yes, if subcon. collect ST then maincon. will get its credit.
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