27 January 2011
I am working in Textile Industries ( Fabric manufcturing Co.) and we are taking job from outside person means labour contractor(They apoint worker on daily basis for this job) for packing ,loading, unloading and transfering goods on contract basis and we are paying amount of Qty.as well as per day basis.
So, i kindly request to clarify and give me opinion for above cases that labour contractor are liable to service tax or not.
27 January 2011
If the contractor is responsible for the job and is paid on quantity as well as number/ time, the same could be said tobe business support services. If there is no responsibility except providing the people then, the same maybe under manpower recruitment and supply. Both cases initial exemption of Rs.10 lakhs wouldbe available if admissible.
CAclubindia
