27 July 2013
Dear All, For the Manpower supply, One of my labour contract issued the bills including Labour Charges,Incentives of Labour, Food provide to labour & room rent for labour.Is it need to pay the reverse tax on above services.Pls solve my problem.
28 July 2013
(i)You can avoid ST payment on rent by making rent as a reimbursement as per terms of agreement
or
(ii)you make a payment directly to tenant and debit the manpower contractor account for the rent paid amount.
or
(iii)you may avoid it by making cash payment for rent if it not exceeds more than 20,000 and write narration... amount paid for rent towards labour and debit the contractor account for this amount. no ST will come on debiting contractor account for this type of transaction..
However if rent element was included in invoice you cannot escape from ST liability except if it provided in agreement that rent was re-imbursement basis
CAclubindia
