Dear Sir, We have assigned one contractor for removing the old tile and laying new tiles in the floor. We have purchased tiles with applicable KVAT and provided the same to this contractor. He has completed the said work by using his own employees (we do not have any control over his employees). Since the Contractor has not yet cross the threshold limit for the Service Tax payment, he has not charged any service tax for the said work done by him for us. As a company, are we liable to pay any Service Tax? Regards, ArunRaj

From the facts it doesnot apeears to be a service under RCM. If the contrctor falls under limit he need not pay service tax. The billing should be for the service of laying tiles and not for labour charges.