serivice tax on railway contractors.

[NITIN GARG]

Dear Sir

One of my client (Company) is railway contractor. He get 'work contracts' done for Indian railways. Further his company gives contracts to transports and labour  for above aid works. Now i want to know that is on the basis on reverse charges service tax is chargeable on these transport and contractors or not. Please clarify.

Thanks

AI Summary

Contractor Seeks Service Tax Clarification on Indian Railways Contracts: Main Services Exempt, Subsidiary Services May Not Be A railway contractor is seeking clarification on whether service tax is applicable under reverse charge on transport and labor contracts related to work done for Indian Railways. The response indicates that while the main service might be exempt, subsidiary services are not automatically exempt. However, subcontracting the works contract itself may be exempt. The applicability of service tax on Goods Transport Agency (GTA) and labor supply depends on the specific terms of the contract.