Service tax on sub contract

[SANJAY MACHE]

Whether service tax is appilcable for sub-contract? Whether the sales by sub-contract shall be shown in service tax returns?

[Surender Gupta]

Yes, service tax is payable on sub-contract and accordingly you need to submit the details in ST-3 return.

AI Summary

Service tax on sub-contract requires recognition of taxability and reporting of sub-contracted sales in service tax returns. Service tax is payable on sub-contract arrangements; sub-contracted sales and consideration for services performed by subcontractors must be disclosed and reported in the periodic service tax return, with supporting records maintained to substantiate the reported entries.