Service tax applicable or not to a sub contractor

[Guest]

 is service tax applicable to a sub contractor engaged in business of repair & maintenance service ?

 

[CA Rachit Agarwal]

Yes. Service Tax is applicable on sub-contractor.

Contractor will be eligible for the cenvat credit for the service tax paid by sub-contractor.

[CASeetharaman KC]

Yes service tax would be applicable depending on whether the threshold limit has been exceeded or not

AI Summary

Service tax applies to subcontracted repair and maintenance services; principal contractor may claim cenvat credit for tax paid. Service tax applies to a subcontractor providing repair and maintenance services, subject to the applicable threshold limit; the principal contractor may claim cenvat credit for service tax paid by the subcontractor, treating it as creditable input service against the contractor's service tax liability.