Consequences of payment of service tax by a constrution contractor and sub contractor

[paresh zatakia]

Dear Sir, when construcion contractor has paid service tax, but subcontractor has not paid and added in bill to contractor considering that subcontractor has pais,what is the consequence if subcontractor is registered under service tax Regards Paresh Zatakia

AI Summary

Subcontractor Liability: Must Pay Collected Service Tax to Government per Section 73A, Despite Main Contractor's Payment A construction contractor paid service tax, but the subcontractor did not, despite billing the contractor as if they had. The issue is whether the subcontractor, registered under service tax, is liable. One response questioned whether the query pertained to Cenvat Credit or service tax liability. Another response noted no specific rule exempts subcontractors from paying if the main contractor has paid, though a 1997 circular might support such a defense. It emphasized proving the main contractor's payment and highlighted that if the subcontractor collected service tax from the contractor, it must be paid to the government per Section 73A.