Service tax on labour chg

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 April 2013 DEAR EXPERTS,

I HAVE QUERY THAT MY CLIENT SUPPLY LABOUR FOR SOME KIND OF WORK AT PARTY LOCATION AND MATERIAL & ALL OTHER EXPENSES ARE TAKEN CARE BY PARTY. MY CLIENT CHARGE BILL FOR ONLY LABOUR PART
MY QUERY IS THAT WHAT IS SERVICE TAX IMPLICATION ON THIS TRANACTION.

PLS ADVICE

THANKS IN ADVANCE

VISHRUT

VISHRUT (Expert)
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26 April 2013 As per the reverse charge mechanism in case of labour service providing service tax is to be paid by the service recipient and not the service payer.

Hence in such a case you are not required to pay service tax on the same and as the onus will on service receipient