Service tax applicable or not????

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Whether Service tax  applicble on labour contractor or not. And if applicable than what abatement rate?????

Replies (2)

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.

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)


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