Pure labour contract
This query is : Resolved
29 April 2014
Can Anyone provide me the provision of Pure labour contract service, if the receipient is a limited company and the provider is an individual, where labour works directly under contractor for admin building structural work but invoice raised on company, is there any reverse charge mechanism would apply if yes then what are the rates and if no then provide a clarificatiory provision on the same.
29 April 2014
Dear Sonia,as per my view pure labour contracts woluf fall under the service category of Manpower Supply.
In case of manpower Supply there is reverse charge wherein 25% service tax shall be paid by Service provifder and 75% shall be paid by service receiver provided the following conditions are satisfied:
1.The Service provider is an individual,Partnership Firm,HUf
2.The Service Receiver is a Company
Our case clearly fits for reverse charge.
In case of manpower Supply there is reverse charge wherein 25% service tax shall be paid by Service provifder and 75% shall be paid by service receiver provided the following conditions are satisfied:
1.The Service provider is an individual,Partnership Firm,HUf
2.The Service Receiver is a Company
Our case clearly fits for reverse charge.
29 April 2014
Yes Annu,
Agree with you, but in our case labour will work under the superintendence of appointed contractor for building work and hence what i think it wont b considered as supply of manpower.
Correct me if i am wrong then.
- Sonika
Agree with you, but in our case labour will work under the superintendence of appointed contractor for building work and hence what i think it wont b considered as supply of manpower.
Correct me if i am wrong then.
- Sonika
29 April 2014
Well Sonia ,
If we go through the defination of supply of manpower as per Rule 2(g) of service tax Rule it says,
supply of manpower,temporarily or otherwise ,to another person to work under his superintendence or control.
That means to qualify as a manpower supply service the labour should work under the control of Service Receiver i.e. the Company in your case.
So may be we can conclude that the pure labour contract where the control is of Contractor may not fall under manpower supply.
If we go through the defination of supply of manpower as per Rule 2(g) of service tax Rule it says,
supply of manpower,temporarily or otherwise ,to another person to work under his superintendence or control.
That means to qualify as a manpower supply service the labour should work under the control of Service Receiver i.e. the Company in your case.
So may be we can conclude that the pure labour contract where the control is of Contractor may not fall under manpower supply.
29 April 2014
I have replied,please have a look.
29 April 2014
Please share your answer,if posible.
29 April 2014
In our case Service tax liability is on Service provider since its pure Labour contract and hence reverse charge mechanism would not apply.
-- SOnika
-- SOnika
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Sale of property furniture sale
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Tds on building rent monthly
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
