what is service tax liability of main contractor in case angaging sub contractors to execute a part of packing and labour supply contrcat

[shaukat hussain]

what is service tax liability of main contractor in case he engage sub contractors to execute a part of his packing and labour supply contract given by his Clint?

[bhart b sharma]

main contractor is entitled to take cenvat credit of service tax paid by the sub-contractor

AI Summary

Cenvat credit entitlement for main contractors allows credit for service tax paid by subcontractors on packing and labour supply contracts. Where a main contractor engages subcontractors for packing and labour supply, the operative point is the entitlement to CENVAT credit for service tax paid by those subcontractors, allowing the main contractor to claim input credit for service tax discharged by the subcontractor on services rendered in execution of the contract.