Reverse charge under manpower supply

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2015 Please Anyone Solve this issue...

if any company receive any manpower services from different causal labour and services amount less than 20,000 and paid in cash to labour than in case service tax applicable under reverse charge & also tell TDS will deducted by company or not .

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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06 August 2015 1. If you are engaging manpower directly without through any manpower service provider then there is no question of service tax.

2.If through manpower supply contractor , you need to pay service tax 100% under reverse charge.

3. If you fall in case 1 above , comply TDS provisions u/s 192

4. If you fall in case 2 above , comply TDS provision u/s 194C

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2015 Sir,
Thanks for giving clarification on this.
but i will not understand why we deduct TDS u/s 192 in case 1 this section for salaried employed and he is causal temporary workers.

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CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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06 August 2015 As such there is no demarcation under the income tax act for causal /permanent workers/ employees.

However if the wages are below the taxable limit there is no TDS. Just information.