Service tax on pure labour charges

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Hi,

Mud is being dugged out from earth during a construciton process. Party 'A's duty is to just load whatever mud, dugged out from the process, in a truck and dispose it off to a specified location. Is this process attracts service tax liability? If so under which service it needs to be categorised? Is there any abatements for this? Kindly help.

 

Regards,

Satya

Replies (5)

Experts' opinions are suggested, I think same rule should apply like any  transport on freight  

Dear SP,

as per my openion, it does not falls under "MANPOWER SUPPLY" or "TRANSPORT OF GOODS BY A ROAD", 

I think that , you are asking for corporate firm side means, it does not falls under "REVERSE CHARGE MECHANISM' also.

Experts openion also welcome for furthur clarification.

Dear SP,

                  As per my opinion since introduction of negative list regime in service tax section 65A which govern the ruling of classification of services has lost its relevance. It  was once deleted but only for statiscal and administrative purposes it was brought back. Since the services provided by your client is not covered in either negative list or mega exemption notification  it is taxable . But may be exemption provided to subcontractor can become applicable (i am not fully sure due to lack of input provided by you).And since no specific abatement is given to this typr of service it will be taxable at 12.36%( subject to limit of Rs. 10 lakh)

Hi Kishore,

Thanks for your valuable inputs. The party i am talking about is a sub-contractor. What kind of exemption is availble to a subcontractor? Kindly provide me the notification number providing expemtion.

Regards,

Satya

Notification No 25/2012 and serial no.29(h)

 

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