09 February 2008
My Client is Mending Contracter. He and his friends done the Job work in a unit and take contract amount after deducting TDSin name of XYZ Mending Contractr. What this service is comes in Service Tax under man power recruitment Agency! The department has issued a show cause notice to my cline.Pl. tellme that he is liablie to pay the service tax or not
12 February 2008
The work carrie dout by your client falls under the category of Commercial or Industrial Construction Services. It is a notified taxable service.
If the total income from the service is below or upto 8 lacs in a financial year your client need not pay service tax.
There is abatement in the services rendered.
You have not stated the amount earned by him and whether this is one time activity or a continuos one.
The gross amount is to be computed including the TDS amount.
15 February 2008
Thanks Mr. Dayal But in my opion manpower recruitment agency as per law mean Section 65 man power recruitment or supply service to clarify that man power recruitment or supply agency service includes services in relation to pre-recruitment screening, verifying the credentials and incidents of the candidate and authenticity of the document submitted by the candidates So my client is not arecruitment or supply agency then how can comes in this parameter. Pl. advice. Thanks CA Rakesh Kabra
CAclubindia
