Sub contractor- exemption from service tax

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....ub contractor- exemption from service tax<br> Query (Issue) Started By: - AJAY KUMAR Dated:- 5-7-2008 Last Reply Date:- 5-7-2008 Service Tax<br>Got 1 Reply<br>Service Tax<br>One of the contractor has....

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.... been awarded the trunkey work of renovation of STATIDUM . The award letter clealy state for reimbusement of service tax. The Contract was awarded prior to 01.03.2008 and contactor was paying 2 % unde....

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....r composition scheme. From 01.03.2008, the contractor is paying 4 % as service tax besides the work contract tax i.e VAT . The subcontractor are also claiming the service tax from the contractor. My Q....

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....UERY IS : 1. Whether, such sub contractor can avail the expemption from service tax , being sub contract. 2. If the contractor has to pay the service tax on subcontract, Will he claim the CENVAT Credi....

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....t under composition scheme Reply By V Ramanujam: The Reply: As I understand, unlike VAT provisions, in the case of service tax, tax is chargeable in both the hands of contractor and sub-contractor. T....

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....hus (1) there is no exemption from service for being sub-contract and tax is to be collected/paid by him. (2) If both sub-contractor/Contractor opts for composition scheme, then no CENVAT credit can b....

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....e claimed by them.<br> Discussion Forum - Knowledge Sharing ....