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 ?