A contractor who takes a work and pays servicec tax on the total Work Done.If he sub lets the same work as a whole to another contractor by deducting the routine Tax cuts such as VAT ,IT (TDAS).does sub contractor also has to pay Sevice tax on the Amounts recieved from the Contactor?
Hello,
It Totally depends on the transaction and the agreement/ contract entered into by both the parties. There is no straight jacket formula to it and can be debatable with some specific clauses.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
It is a back to back payment agreement wherein he will deduct the wct and make the balance payment after deducting 1% IT.
Dear Sir,
Yes, he has to pay the service tax on the amount received from the contractor.
Please feel free to call/ revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
However, contractor can adjust his output service tax liability from the input credit called from the service tax paid to sub contractor.
Hello,
The TDS can be adjusted your Tax Liability.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Hello,
If you are doing the work as an independent contractor like sourcing the material and stuff then you will be required to charge all Indirect Taxes.
Regards
Keerthiga Padmanabhan
M.Com., CA, LLB
