TaxTMI 
TaxTMI 
ONE OF MY CLIENT RECEIVED SCN CONTAINING AS A SUB CONTRACTOR PAYMENT RECEIVED FROM PRINCIPAL CONTRACTOR FOR CONSTRUCTION OF PETROL PUMP WORK INCLUDE 10% OF MATERIALS AND 90% IS MAN POWER. I WANT TO KNOW HOW I REPLY SCN WITH CASE LAWS.
SUB CONTRACTOR RECEIVED SCN FOR NON PAYMENT OF SERVICE TAX
17 Dec 2022 
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Service tax liability for subcontractors may be challenged by contesting limitation, evidentiary basis, and invoking exemption or neutrality.
Subcontractor received an SCN for non-payment of service tax for construction work; core issues are characterization as taxable service, lack of documentary proof of subcontracting, and potential time bar. Defenses include contesting limitation, disputing demands based solely on third party tax records, invoking revenue neutrality where subcontractor payment leads to credit for main contractor, and asserting Works Contract Service exemption if supported by facts. Experts advise producing invoices/agreements and obtaining specialized drafting and review; mere case citations without matching facts are unlikely to succeed. (AI Summary)
Subcontractor received an SCN for non-payment of service tax for construction work; core issues are characterization as taxable service, lack of documentary proof of subcontracting, and potential time bar. Defenses include contesting limitation, disputing demands based solely on third party tax records, invoking revenue neutrality where subcontractor payment leads to credit for main contractor, and asserting Works Contract Service exemption if supported by facts. Experts advise producing invoices/agreements and obtaining specialized drafting and review; mere case citations without matching facts are unlikely to succeed. (AI Summary)