Service tax

[subhash komalwar]

Dear sir,

Main contractor has claime Service tax on his bill to recover the service tax from client (who has alloted the work to the main contractor) However main contractor got the same work done by sub-contractor hence sub-contractor will submit the work done bill to main contractor.  So in this case will the sub contractor claim the service tax on his bill or therwise? Please clarify

Thanking you sir,

AI Summary

Subcontractors and Main Contractors: Cenvat Credit and Service Tax Rules Explained Under Cenvat Credit Rules, 2004. A query was raised regarding whether a subcontractor can claim service tax on their bill when the main contractor has already claimed service tax from the client. The response clarified that the main contractor can avail Cenvat credit for bills from the subcontractor, as these services are considered input services under the Cenvat Credit Rules, 2004. The subcontractor can also avail Cenvat credit, depending on the nature of the work and applicable rules. Additionally, the subcontractor's services fall under service tax rules, subject to exemption limits.