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Jaiprakash clarification - Service Tax on Sub-contractors
CBEC vide Circular No. 138/07/2011-ST dated 6 May 2011 has yet again clarified that a Sub-contractor providing its services has to be classified under the taxable service category which gives the most specific description and not to the taxable service category which gives a general description and accordingly services provided by the Sub-contractor would be subject to service tax. It may be noted that exemption to a Sub-contractor would still be available if the service provided by them is classified under the taxable service category i.e. WCS, notwithstanding that services are provided to the Main-contractor or to the project.