Reverse charge mechanism
$ achin @grawal (ahmedabad) (39 Points)
22 September 2013$ achin @grawal (ahmedabad) (39 Points)
22 September 2013
Ankit Agarwalla
(CA)
(281 Points)
Replied 22 September 2013
The concept of manpower supply service in parlance of reverse charge mechanism clearly specifies that for a particular service to be covered under this head, CONTROL is of prime essence.
Only if the subject co has direct control over the manpower, then it will be covered under this category.
In the given case, as i understand the co instructs whatever work has to be done to the principal contractor and he in turn controls the manpower. Therefore, it does not fall under manpower supply services.
In our organisation also a similar issue arose at the time of introduction of RCM and we have resorted to the above policy.
$ achin @grawal
(ahmedabad)
(39 Points)
Replied 22 September 2013
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