https://www.taxtmi.com/forum/issue?id=106866 A sub-contractor must pay service tax unless it provides services to a main contractor who supplies an exempted service; where a sub-contractor pays tax the main contractor may take that tax as CENVAT credit. The main contractor may opt for the Forty Percent valuation under Rule 2A(ii) and forgo CENVAT credit, but that option does not absolve sub-contractors of their separate service tax liability. The cited authority applies to the pre-01.07.2012 period and is not determinative for subsequent tax liability. en-us Mon, 02 Jun 2014 11:50:42 +0530 Thu, 23 Jan 2025 15:57:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=106866 A sub-contractor must pay service tax unless it provides services to a main contractor who supplies an exempted service; where a sub-contractor pays tax the main contractor may take that tax as CENVAT credit. The main contractor may opt for the Forty Percent valuation under Rule 2A(ii) and forgo CENVAT credit, but that option does not absolve sub-contractors of their separate service tax liability. The cited authority applies to the pre-01.07.2012 period and is not determinative for subsequent tax liability. Discussion-Forum Service Tax Mon, 02 Jun 2014 11:50:42 +0530 https://www.taxtmi.com/forum/issue?id=106866