taxability of the service of sub - contractor when main contractor's service is exempted

[N R CONSULTING N R CONSULTING]

A private limited Company has received a contract from MCD for collection and deposition of municipal solid waste which is exempted under service tax. The company sub - contracts the entire service of collection and deposition of municipal solid waste to a sub-contractor. Whether the service of the sub-contractor is exempted. Kindly support reply with provisions / case laws.

AI Summary

Subcontractor's Municipal Waste Management Services Taxable Despite Main Contractor's Exemption; Interpretation of Exemption Entries Key A private limited company received a contract from a municipal corporation for municipal solid waste management, which is exempt from service tax. The company subcontracted this service, raising the question of whether the subcontractor's service is also exempt. Various experts discussed the issue, referencing bundled services, mega notification exemptions, and the nature of works contracts. The consensus was that the subcontractor's services are not exempt because they are classified as support services, which are taxable. The interpretation of statutory provisions and exemption entries was crucial in determining the taxability of the subcontracted services.