Contractor service

This query is : Resolved

RAVI SONI (Querist)
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10 November 2012 Mr. A is constructing a building for which he wants to employ a contractor, now what will be impact of Service Tax on Mr. A under the following circumstances :-
1. If Mr. A gives the contract with materials.
2. If Mr. A gives the contract only for labour.

Is there any reverse charge or any abatement applicable on Mr. A.

What will be the situation of Mr. A in case where contractor is not paying Service Tax.

CA Sahil Singla..

CA Sahil Singla.. (Expert)
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10 November 2012 1. In this, since service to be received is Job work, so no reverse charge

2. No. reverse charge bcoz it's a labour service.

So no impication on mr.A, whether contractor pays Tax or not