Hydraulic Hoists for hydel dam project

[goverdhna reddy]

we have taken up  a work from principle contractor for doing the hydraulic hoisting work  for 75 % of our billing we have paid VAT as well as ED.Recently our principle contractor has received a notice from Service tax Dept and asked them to pay service tax @ 33% on entire contract and the same has been paid by the principle contractor.Now our issues are

1.can we get exemption and raise  service bill for the unbilled portion of work .

AI Summary

Contractor in Hydraulic Hoisting Project Faces Service Tax Dilemma; Seeks Advice on Exemption and Billing Options A contractor engaged in hydraulic hoisting work for a hydel dam project, having paid VAT and excise duty on 75% of their billing, is facing a service tax issue. The principal contractor received a notice to pay a 33% service tax on the entire contract, which they have paid. The contractor seeks advice on whether they can claim exemption and bill for the remaining work. A respondent suggests that sometimes service tax is paid with interest to avoid litigation, and the taxability might differ based on the nature of the contract, advising a detailed examination of the facts.