Applicability of labour supplying

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 January 2016 Dear Experts, i (individual) have taken contract of Rs. 40000/- from pvt. ltd. company for installation work and the required materials will be supplying by service receiver however No contract deed is made for the same..query.1) weather this service is work contract or only supplying of labour..2) will RCM be applicable or not.. Regard vivek saahu

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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04 February 2016 To qualify as Works Contract Service, both materials and labour should be supplied by the service provider under a single invoice.In your case the materials are supplied by the service recipient at his site and you are providing only labour for the installation work. Hence the service rendered does not come under Works Contract. Your invoice should clearly state that the charges are towards installation and only supply of labour. You are therefore only supplying Manpower and rendering Supply of Manpower Service. Further since you are an individual and the service recipient is a body corporate the service recipient is liable to pay the service tax on Manpower Supply Services under the Reverse Charge Mechanism.