Service tax on man power supplu

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 August 2016 Dear All,

Our company gave a contract (individual ) for construction of a factory building in which we are giving the materials , contractor job is to bring his own labour and complete the construction.

In this scenario are we liable to pay ST on reverse charge ? If yes how much % and on what value

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 August 2016 It will fall under works contract if payment is made for the work done. In this case reverse charge applicable for 50%. !00% reverse charge applicable if payment is made for the man power supplied.

Querist : Anonymous

Querist : Anonymous (Querist)

26 August 2016 Thank you seetharaman sir . But actually control & supervision is not their in our hands, we submitted the design and provided necessary material for construction.

Can we take the stand that as labour is not under our control and need not pay ST on reverse charge ?

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 August 2016 As stated by you labour is not under your control, it will not fall under man power supply. But it will fall under works contract for which 50% reverse charge applicable.