Labour contractor who provided labour for mfg of excisable g
This query is : Resolved
07 November 2014
Dear Sir,
We are Manufacturer of Excisable Goods, for manufacturing work labour has been provided by Contractor, payment to labour has been paid by us directly instead of contractor and commission on each labour only paid directly to contractor by us.
now we would like to know that what amount shall attract Service tax, should we pay Service tax on Labour Charges paid to Labour directly by us and Commission each labour paid to Contractor by us.
Either of them are applicable for taxes or we should pay taxes on both?
Dhiraj Pudale
Shreem Electric Ltd.,
Maharashtra (Kolhapur)
We are Manufacturer of Excisable Goods, for manufacturing work labour has been provided by Contractor, payment to labour has been paid by us directly instead of contractor and commission on each labour only paid directly to contractor by us.
now we would like to know that what amount shall attract Service tax, should we pay Service tax on Labour Charges paid to Labour directly by us and Commission each labour paid to Contractor by us.
Either of them are applicable for taxes or we should pay taxes on both?
Dhiraj Pudale
Shreem Electric Ltd.,
Maharashtra (Kolhapur)
22 November 2014
Service tax is to be paid on the total bill amount excluding service tax charged by the contractor.
For eg.
Amount paid to labourers - Rs. 30,000
PF - 4000
Service Charges @ 10% - 3000
Total - 37,000
Service tax is applicable on Rs. 37,000
For eg.
Amount paid to labourers - Rs. 30,000
PF - 4000
Service Charges @ 10% - 3000
Total - 37,000
Service tax is applicable on Rs. 37,000
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