I am labour contractor, I am charging rs. 7000/- per labour from company + 10% on 7000 that is rs. 700/- per labour as my service charges from company. Than on what amount I am liable to pay service tax ?? 7700 or 700
31 January 2014
Service tax is applicable on full amount of Rs.7700. In case of manpower supply services, the service receiver is liable to pay service tax on 75% of the value, if the service provider is individual, HUF, partnership firms, proprietary firms or an AOP and service receiver is incorporated as body corporate located in taxable territory. The service provider is liable to pay service tax on balance 25%.
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