Service tax liability for subcontractor

NICKOONJ VANANI (ARTICLE) (65 Points)

09 March 2017  

Mr. X is having a business of labour job work. Till today he was doing labour job work contract at small scale . And so he hasn't registered his self under service tax. 

In current year he get a big contract with Mr. Y . 

This labour contract work is estimated to cross 50 lakh. 

Under this contract , Mr. X will provide labour job work for the construction of OVER BRIDGE . 

 

Mr. Y has received a tender for construction of over bridge .  Hense Mr y is providing service to the government and Mr x is providing service for that over bridge..

 

In this case , Mr x is liable to get registered under service tax and to pay service tax ?