Service by Sub Contractor

[Harsh Jindal]

Does services provided by sub-contractors liable to tax?

[YAGAY andSUN]

Yes, they are liable to charge tax to main contractor.

But, if,  Sub-Contractor providing services by way of works contract to another contractor providing works contract service which are exempt. (Sr. No. 29 (h) of the Notification No. 25/2012-ST, Dated 20-06-2012 w.e.f. 01-07-2012).

AI Summary

Service tax liability of sub-contractors affirmed, with exemption for specified works contract services under notification. Sub contractors are generally required to charge service tax on services provided to the main contractor, except where the sub contractor supplies works contract services to another contractor and those services qualify for the notification based exemption for works contracts.