We (manufacturing co)received two seperate bills from individual vendor, one bill is of purchase material & another is only for labour charges & vendor charge service tax in labour bill @ 12.36% & not charged VAT in material purchase bill. Is company liable to pay service tax on labour charges under reverse charge? if yes then under which service catagory? (Nature of work is electric panel work).
05 March 2014
Sir,company is not liable to pay service tax under reverse charge on labour charges.Had it been a case of works or manpower supply contract,then reverse charge would have been applicable.
CAclubindia
