Liability of Sub contractor

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A civil contractor sub-let a part of the contract to Sub-contract. Is Sub-contractor liable to Sevice tax in respect of work done for Contract not involving separate contract from the party.

AI Summary

Subcontractor Service Tax Liability: Exempt if Main Contractor Pays, But Charge for Future Contracts Due to Rule Changes. A civil contractor sub-let part of a contract to a subcontractor, raising the question of the subcontractor's liability for service tax. One response indicated that the subcontractor is not liable if both parties are registered under the same category and the subcontractor does not provide services directly to the customer. Another response highlighted that certain circulars exempt subcontractors from service tax if the main contractor pays it, but advised charging service tax due to changes in rules. A third response suggested relying on past circulars for previous work but recommended charging service tax for future contracts, considering input service credit eligibility.