TaxTMI 
TaxTMI 
Where the main contractor and sub-contractor both are invoved in same contract. In this case whether main contractor is liable to pay service tax.
Sub contractor liability on service tax.
18 Feb 2012 
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Service tax liability: both main contractors and sub-contractors can be liable, with credit rules depending on extent of subcontracting.
Both main contractors and sub-contractors are separately liable for service tax on services they render. If part of the work is subcontracted, tax paid by the sub-contractor is available as cenvat credit to the main contractor as an input service. If the entire work is subcontracted, the sub-contractor alone is the service provider and the main contractor cannot claim credit. Where credit is taken for part-work, the main contractor must discharge tax without availing the abatement under the relevant notification. (AI Summary)
Both main contractors and sub-contractors are separately liable for service tax on services they render. If part of the work is subcontracted, tax paid by the sub-contractor is available as cenvat credit to the main contractor as an input service. If the entire work is subcontracted, the sub-contractor alone is the service provider and the main contractor cannot claim credit. Where credit is taken for part-work, the main contractor must discharge tax without availing the abatement under the relevant notification. (AI Summary)