Credit of service tax paid to sub contractor

[puneet virmani]

A is a principal contractor engaged in sanitation work contracts-registered in service tax and paying service tax @33% of total value recieved after deducting WCT (sales tax)& TDS (Income tax)- not claiming any othet nature of deductions. As contractor gives service tax to sub-contractors on payment given to them in execution of contract . can contractor A claim benefit of service tax paid to sub contractor.

AI Summary

Contractor A Denied Service Tax Credit on Subcontractor Payments; Previously Allowed, Now Prohibited Under Current Rules A principal contractor, referred to as A, engaged in sanitation work contracts, inquired about the ability to claim credit for service tax paid to subcontractors. A is registered for service tax and pays it at 33% of the total value received, after deducting WCT and TDS, without claiming other deductions. The response indicated that previously, credit for service tax paid to subcontractors was allowed, but currently, it is not permitted.