Service tax paid by the contractor

JAYS (MBA) (97 Points)

09 May 2014  

Respected tax consultants,

we are the sub contractor of a large construction company dealing in the residential appartments project. As per rule the ST was supposed to be charged by us in the bill and then to deposit in the govt. a/c. However as per the contract all the taxes including the WCT, TDS and also the service tax was paid by the main contractor. The problem  now is the Service tax department is not considering it and they have sent a notice to us stating that you need to deposit the same amount of ST with your Service tax no.

Your kind response will be highly appreciated.

Jays...