kuldeep (Accountant) (49 Points)
24 December 2013Dear All,
I am working in Civil Construction Company and our company paying service tax as per the provision of S.T Law ratio 60:40. (40 % Service Tax). Now Service tax department raise liability on our sub contractor sepratly as per our TDS returns. Please clarify that our Sub Contractor are liable to pay tax sepratly as we pay service tax on the same services.
Regards
Kuldeep
Sonu Kumar
(Account Manager)
(665 Points)
Replied 24 December 2013
Yes.... Subcontractor also liable to pay service tax .... they raise bill including service tax to company and you will get input tax credit on it........!!!
Now after reverse charges machenism company have to pay 25% service tax of subcontractor..... If any subcontractor is not registered then we can not avail profit of input credit so it is must for the company that Dont Give any Work to Unregisterd Subcontractor
CAclubindia
