11 February 2011
We are one of the service provider registered in Manpower Supply & Security Services in Service Tax and we supply workers (Skilled & Semi-skilled) to Sugar unit for his Research & Development Work for plantation & other related work. Are we liable for pay service tax on these services as service tax exempted on agriculture work & sub-contracting? Please guide us with suitable notification/circulars
12 February 2011
Yes. Whatever may be the purpose, when a person(service provider) supply manpower (personnel) for attending the works of the other (Service receiver) and when the personnel are in the rolls of the service provider and when the service provider has no control over the personnel sent for attending the works of the service provider but has control only by the service receiver, Service tax is applicable on the total amount received by the Service provider.
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