TaxTMI 
TaxTMI 
TaxTMI 
Does services provided by sub-contractors liable to tax?
Service by Sub Contractor
Harsh Jindal
Sub-contractors must charge service tax unless exempt under Sr. No. 29 (h) of Notification No. 25/2012-ST. A query was raised regarding the liability of sub-contractors to charge service tax. The response clarified that sub-contractors are generally required to charge tax to the main contractor. However, an exception exists if the sub-contractor provides services through a works contract to another contractor, where such services are exempt under a specific notification (Sr. No. 29 (h) of Notification No. 25/2012-ST, effective from July 1, 2012). (AI Summary)