Dear Sir,
M/s ABC Ltd is getting Govt Road Contract at Kolkata and M/s ABC Ltd given the sub contract to XYZ Ltd. When XYZ Ltd is raised the RA bill to ABC Ltd then Service tax under Work Contract is chargeable in the bill of XYZ Ltd.
Due to Govt Work contract , In hand of ABC Ltd is it Exempted to Service tax .
Kindly give me the proper solution in this regards.
Regards
S M
Subcontractor XYZ Ltd exempt from service tax for government road project under Notification No. 25/2012-ST. A query was raised regarding the applicability of service tax on a subcontractor, XYZ Ltd, providing services to ABC Ltd for a government road contract in Kolkata. The question was whether the service tax is exempt for ABC Ltd due to the nature of the government work contract. Two responses clarified that, according to Notification No. 25/2012-ST, services related to road construction for public use are exempt from service tax, whether executed by the main contractor or a subcontractor. Therefore, there is no requirement for XYZ Ltd to charge service tax in this scenario. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
