Reverse charge

This query is : Resolved

CA Pratik Sirwani (Querist)
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14 January 2014 Dear Members plz help me out wid d following query : A sub-contract has been given to an individual labour contractor for fabrication, erection and welding job for Oil storage tanks. Its a pure labour contract and rates as per Work Order are fixed on per MT basis of work done.. Now d question is wheather d same shoul b treated as Manpower supply service? The sub-contractor has already raised his first running bill charging service tax @ 12.36% on 25% of bill value, claiming it to be manpower supply service liable under Reverse Charge

Neljo Davis ACA

Neljo Davis ACA (Expert)
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31 January 2014 “Supply of manpower” means supply of manpower, temporarily or otherwise, to another person to work under his superintendence or control. In my opinion the contract mentioned in your query will not fall under the category of manpower supply since the labour will work under command of Principal Employer ie labour contractor. The awarder will have authority over the work done but not on the labours who does the work.