TaxTMI 
TaxTMI 
exemption of works contract service provided by subcontractor to maincontractor , who's works contract service is exempted
X X X X Extracts X X X X
X X X X Extracts X X X X
....xemption of works contract service provided by subcontractor to maincontractor , who's works contract service is exempted<br> Query (Issue) Started By: - Dayananda P Dated:- 9-1-2014 Last Reply Date:- 10-1-2014 Service Tax<br>Got 1 Reply<br>Service Tax<br>ours is a partnership firm . we are providing works contract service ( Original works ) to m/s 'A' a Body corporate in a specified SEZ . M/s 'A'....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... got that works order from m/s 'B' which is a company & developer of a SEZ. . As per form A-1 & A-2 furnished by M/s B' to M/s 'A' , the works contract service provided by 'A' to 'B' in the SEZ is exempt from service tax . But m/s 'A' subcontracted the same work to us . we are issuing bill to m/s 'B' mentioning the work details executed at SEZ area aginst particular work order. please clarify me ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....whether we can claim exemption from service tax on the works contract & labour contract service provided at SEZ , to m/s 'B' on the strength of sl.no. 29 (h) of notification no 25/2012 ST dtd. 20/06/2012 Reply By ROHAN THAKKAR: The Reply: Dear Sir, If M/s A is a body corporate and provides services in SEZ, then they are not required to pay service tax subject to compliance of Notification No.....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 12 / 2013-Service Tax. One of the condition is that Form A-2 should be received by M/s. A from SEZ unit or developer. Now if the said work has been subcontracted by Mr A to you, then you can also claim exemption thereon by virtue of Clause 29(h) of Notification No 25/2012-ST. It reads as under: '29(h) sub-contractor providing services by way of works contract to another contractor providing wor....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ks contract services which are exempt;' The exemption is not subject to any qualification except that the said service should be exempt for main contractor. I Thus, exemption can be claimed under Sr No 29(h) of Ntf 25/2012-ST. However, as as matter of evidence, kindly enter into agreement with main contractor so as to avoid dispute in future. Regards Rohan<br> Discussion Forum - Knowledge Sh....
X X X X Extracts X X X X
X X X X Extracts X X X X
....aring ....