Log in Register

Login to your account

Username *
Password *
Remember Me

Create an account

Fields marked with an asterisk (*) are required.
Name *
Username *
Password *
Verify password *
Email *
Verify email *
Captcha *
View more blog entries

Consult Construction

Consult Us For Construction

Service Tax Payment by Contractor on main Contract

Posted by on in Service Tax
  • Font size: Larger Smaller
  • Hits: 475
  • 0 Comments
  • Subscribe to this entry
  • Print
  • Report this post

2015-VIL-271-GUJ-ST

Service Tax - Liability to pay service tax on the obligations sub-contracted to the petitioner by main contractor – Service tax payment by Contractor on main contract, liability to pay service tax by petitioner (sub-contractor) on sub-contracted portion – Demand confirmed by Settlement Commission – Appellant provided services to different clients for contracted tour and providing bus services on contract basis

HELD - There is an independent contract for providing transportation services / bus services, between the petitioner and M/s M&M (Mahindra & Mahindra) / M/s MLL (Mahindra Logistics) and even between M/s MM / M/s MLL and M/s AMW Ltd - The petitioner cannot be said to be a sub-contractor with respect to the transportation services provided to M/s.AMW Ltd. and therefore, the contention of the petitioner that M/s.MM / M/s.MLL paid service tax on the transportation services rendered to M/s.AMW Ltd. and therefore, the petitioner is not liable to pay service tax and/or the contention that there shall be double taxation if the tax is recovered from the petitioner, has no substance and the same cannot be accepted. The service tax paid by M/s.MM / M/s.MLL with respect to transportation services provided to AMW is with respect to the separate and independent contract - The agreement / contract entered into between the petitioner and M/s.MM / M/s.MLL is an independent contract for providing services of transportation and therefore, the petitioner is not a sub-contractor and therefore, the petitioner is liable to pay service tax on the transportation services / bus services provided by the petitioner to the M/s.MM / M/s.MLL. Under the circumstances, the petitioner is not entitled to any of the reliefs - Assessee contention that proceedings before the Settlement Commission can be said to be an alternate to regular and normal adjudication proceedings – HELD - Considering the provisions of the Act more particularly Section of Chapter V of the Act, by no stretch of imagination it can be said that the proceedings before the learned Settlement Commission is an alternate to adjudication proceedings - Technically speaking, proceedings before the Settlement Commission cannot be in strict-senso said to be an alternate to the adjudication proceedings - With respect to such questions, appropriate remedy would be to proceed with the show cause notice, as the power of adjudication is vested with the appropriate authority - Assessee petition dismissed

Rate this blog entry:
50
Trackback URL for this blog entry.

Comments

  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest
Guest Thursday, 27 July 2017

Like us on facebook

Twitter Feed

ConsultC Session organised by Builders' Association of India on RERA and GST at Mumbai https://t.co/D6bjdqk54I
ConsultC The word is spreading on https://t.co/QI70LPC81h
ConsultC GST - Impact on Projects, Mumbai https://t.co/6vST83thsK

Address

Address:
304, Super Plaza, Sandesh Press Road, Vastrapur, Ahmedabad
Gujarat-380054
Tel:
+91 - 079 - 40032950
E-Mail:
This email address is being protected from spambots. You need JavaScript enabled to view it.
Website:
www.consultconstruction.com

markerFind on Google Maps

Who we are

We are Ahmedabad based professional consulting firm. We are providing various services to Construction, Real Estate and Project Companies in various areas like Indirect Taxation – Service Tax & Multi state VAT consultancy, ERP implementation, Site & Management audit, Designing Tender & other related contractual documents etc.