Works contract

625 views 3 replies

CA Vivek Goyal

Practising CA

148 Points Joined July 2011

I am having a query friends. There's a construction company providing works contract services to airport. These services are exempted from service tax wide Point no. 14 of not. no. 25/2012 dt. 20.06.2012. Such construction company is also receiving services of manpower recruitment from another agency. It will be chargeable to service tax and construction company is required to pay RCM. It can't avail cenvat benefit of service tax paid. Now whether there is any alternative to save this service tax or not?
Thanks in advance friends

Replies (3)

Manoj Agarwal

Service Tax Consultant Rourkela Service

3456 Points Joined March 2012

1. Please Note that w.e.f. 01-07-2012, reverse charge is applicable only in case of supply of Manpower service. Earlier, the classification was Manpower Recruitment and supply but now the manpower recruitment is not covered under the new definition of 'Supply of Manpower' and therefore reverse charge not applicable.

2. If the service provider of manpower supply is a body corporate, then reverse charge is not applicable.

Kindly contact for further clarifications.