service tax liability on sub contracting work contract

[gopesh agrawal]

work of main contractor (i.e.work contract) is exempt from service tax under mega exemption notification ( goverment infrastructure development work) now work contractor want to sub contract some work, wheather sub contractor is liable for services tax.please provide solution with legal support.

AI Summary

Sub-contractor work exempt from service tax if it qualifies as 'Works contract' under Entry No. 29(h) of Notification 25/2012-ST. A user inquired about the service tax liability on sub-contracting work when the main contractor's work is exempt under the mega exemption notification for government infrastructure development. The consensus among respondents was that if the sub-contracted work qualifies as a 'Works contract' involving both labor and materials, it is also exempt under Entry No. 29(h) of Notification No. 25/2012-ST dated 20.06.2012. Otherwise, the sub-contractor may be liable for service tax. The user expressed gratitude for the responses received.