Reverse charge

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11 January 2013 WHAT IS THE DEFINITION OF "WORK CONTRACT"& "SUPPLY OF MANPOWER"?
IS RAW MATERIAL HANDLING CONTRACT COVER UNDER 'SUPPLY OF MAN POWER"

Kaushik Vinod

Kaushik Vinod (Expert)
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11 January 2013 Dear Tushar,

As per Section 65B(54)works contract" means a contract wherein transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods and such contract is for the purpose of carrying out construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, alteration of any movable or immovable property or for carrying out any other similar activity or a part thereof in relation to such property;

As per Rule 2(g) of Service Tax Rules,1994 Supply of Manpower means supply of Manpower temporary or otherwise to another person under his superintendence or Control.

Raw material handling can be called Supply of Manpower only if the Labour works under the control of the person receiving services otherwise it will be a simple labour contract and no reverse Charge on it.
I have made a small presentation on Manpower Service covering all the aspects which is available @ caclubindia in my files.

Thanks