Whether Service tax applicble on labour contractor or not. And if applicable than what abatement rate?????
Pawan Bhutani (CA ) (63 Points)
31 July 2013Whether Service tax applicble on labour contractor or not. And if applicable than what abatement rate?????
CA. Kuldeep Singhi
(Entrepreneur)
(424 Points)
Replied 01 August 2013
Yes, Service tax is applicable on labour contractor i.e. Man Power Supplier. In this case 25% ST is paid by Labour Contractor & 75% is paid by Service Receiver.
RENGARAJ R.K
(ADVOCATE)
(7557 Points)
Replied 01 August 2013
This service is coming under reverse charge mechanism and hence service provider, individual, huf, firm has to pay 25% on the value of the bill and 75% by the service receiver (business entity body corporate)