We are doing steel fabrication on labour rate in the client premises. Our are decided on the Kgs/ Pcs basis. We calculate the Kgs or Pcs produced during the month and charge from client as per the agreed rate per kgs/ pcs basis and presently we are not charging any service tax due to Reverse Charge Mach. (We are registered under Manpower supply agency under Service Tax.
Client provide us the Raw Material, Consumable Material, Tools, power and drawing. We send our Supervisor, Fitter, Welder and Helper get the work done.
Now my client query is that we are not supplying any labour to him and the 100% RCM is not applicable on us.
Can you please help in this regard under which category of service we have to register under the service tax.
27 May 2015
In My Opinion, Sir since we are issuing bills on the basis of Pcs/Kgs and not on No. of hours our employees worked we wont be covered under manpower recruitment. We should get registered as Commercial or industrial construction.
CAclubindia
