TaxTMI 
TaxTMI 
Sub contractor liability on service tax.
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....ub contractor liability on service tax.<br> Query (Issue) Started By: - JIMUTA SAHOO Dated:- 18-2-2012 Last Reply Date:- 27-2-2012 Service Tax<br>Got 3 Replies<br>Service Tax<br>Where the main contrac....
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....tor and sub-contractor both are invoved in same contract. In this case whether main contractor is liable to pay service tax. Reply By rakshit verma: The Reply: In this regard, pl.see service Tax Cir....
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....cular dated 06.5.2011.Both are liable to pay service tax. However, main contractor may avail cenvat credit of service tax paid by sub-contractor on services rendered by him Rakshit Verma Advocate R....
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....eply By raj kumar shukla: The Reply: But Nofn.1/2006 does not permit cenvat credit? Reply By vijay kumar: The Reply: As per CBEC Circular dt. 23.8.2007, if part of the work is entrusted to sub-cont....
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....ractor, the service tax paid by the sub-contractor can be taken as credit by the main contractor since it is an input service for him. However, if the entire work is entrusted to the sub-contractor, t....
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....he entire service stands rendered by the sub-contractor and he shall be liable to pay the tax and the main contractor cannot take the credit since he doesn't provide any output service. As regards Nof....
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....n.1/2006-ST, if it is a case of part work done by the sub-contractor, credit can be taken by the main contractor but the service tax has to be discharged without availing the benefit of abatement unde....
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....r the said notification.<br> Discussion Forum - Knowledge Sharing ....