TMI BlogSub contractor liability on service tax.X X X X Extracts X X X X X X X X Extracts X X X X ..... Where the main contractor 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 Circular 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rakshit Verma Advocate - Reply 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-contractor, 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 entir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e work is entrusted to the sub-contractor, the 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 Nofn.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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... without availing the benefit of abatement under the said notification. - Sub contractor liability on service tax. - Query Started By: - JIMUTA SAHOO Dated:- 18-2-2012 Service Tax - Got 3 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x ..... X X X X Extracts X X X X X X X X Extracts X X X X
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