In Service Tax Appeal No. 50889 of 2017-ITAT- A sub-contractor would be liable to pay service tax even if the main contractor has discharged service tax liability on the activity undertaken by the sub-contractor in pursuance of the contract, reiterates ITAT (New Delhi)
Members DILIP GUPTA (PRESIDENT) & HEMAMBIKAR PRIYA (TECHNICAL) [10-04-2023]

Read Order: Sharma Decorators v. Commissioner of Service Tax-Delhi

Chahat Varma

New Delhi, April 18, 2023: The Delhi bench of ITAT has recently ruled that M/s Sharma Decorators [appellant] are liable to service tax for services rendered by them as sub-contractors.

The Tribunal placed reliance on Commissioner of Service Tax, New Delhi vs. Melange Developers Private Limited [LQ/CESTAT/2019/61], wherein it was held that Section 68 of the Act provides that every person, which would include a sub-contractor, providing taxable service to any person shall pay service tax at the rate specified.

Observing that in the absence of any exemption granted, a sub-contractor has to discharge the tax liability, the appeal was dismissed.