Liability of service tax

[chaganti srinivas]

I wish to know who is liabile for paying service tax, if a person or organisation undertakes subcontract from another contractor. can i have case law or notification confirming the liability only on main contractor

[Ravi Chopra]

In case a subcontractor is undertaking any activity which is taxable under the provisions of service tax, he can not escape from his service tax liability merely because he is the sub-contractor.

[Madhukar N Hiregange]

Sub contractor is liable after 23.8.2007. Prior to that there was a circular which clarified that there is no liability. Main contrazcvtor can claim credit of ST paid by you.

AI Summary

Subcontractors Liable for Service Tax Post-August 23, 2007, Main Contractors Can Claim Credit for Paid Tax A query was raised regarding the liability for paying service tax when a subcontractor undertakes work from a main contractor. One response clarified that subcontractors cannot avoid service tax liability if their activities are taxable. Another response noted that after August 23, 2007, subcontractors are liable for service tax, whereas prior to that date, a circular indicated no such liability. The main contractor can claim credit for the service tax paid by the subcontractor.