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Discussion > Service Tax >

service tax on labour contract

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Chartered Accountant ( Job)

[ Scorecard : 109]
Posted On 15 February 2008 at 10:13 Report Abuse


If owner of property supplied all material to contractor for constrction of a house and giving only labour contract to contractor, then this contractor can charged Service tax @ 2% ( i.e., composition of scheame) or not?

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[ Scorecard : 1426]
Posted On 15 February 2008 at 14:38

Contractor can charge service tax


[ Scorecard : 25]
Posted On 16 February 2008 at 16:49

No, Service Tax on Labour Contract is 12.36%. Compositon scheme is applicable in case of works contract.

Posted On 21 March 2008 at 14:50

We are engaged with manufacturing co. & fabrication. We are charging service tax on labour charges to our customer & one of our customer is told us don't charge service tax to us. Is it possible that we can't charge him a service tax?

What is the service tax rule about labour charges of fabrication work? Can we charge him service tax or not?

Why not we can charge him service tax?

Posted On 27 July 2008 at 12:26

Dear sir,

we are in business of providing labour, now here i earn as labour commission per day per labour on daily wages and also giving the salary to labour and also making the payment of provident fund under my firm's name only.

pls suggest whether total payment (i.e. salary+pf+commission) is the total turnover or only commission is turnover.

thanking you,




[ Scorecard : 512]
Posted On 27 July 2008 at 13:24

Whether salary and PF is received from your customers as reimbursable expenditure?

Posted On 10 October 2008 at 09:52

We are manfuacturer of Pipe Fittings, We are giving labour contract to various labour contractor on piece basis and daily basis. We are also paying duty on our final product.

Labour contractor doing labour jobwork in our factory.

Can Labour Contractor can charge Service tax on labour cost?

Madhukar N Hiregange
Chartered Accountant

[ Scorecard : 20901]
Posted On 10 October 2008 at 14:48

WRT - Rupesh Query

In this case since youhave mentioned piece rate it is assumed that the contractor will notbe paid unless he produces the pipe fittings and that he works on principal to princiapl basis with responsibility on  him.

If so, the ST is liable if the activity of the contractor does not amount to manufacture as set out in Section 2 (f) of CEAct.

In this regard if there is a distinct and different item coming into existence then ti si considered as manufacture.

Posted On 18 November 2008 at 11:32

We are doing cleaning service contract work out off total contract amt. 20% is for cleaning materials and consumables. Cleaning materials and consumables purchased  with vat in this connection shall be claimed exception of service tax  of cost of cleaning materials.

with regards

Posted On 20 November 2008 at 11:28

Dear sir,

we are getting labour( Causal) for housekeeping, helper and any other work form labour contrator.

please lwt us know under which notifiaction it is cover and what is the % of ST to be charged by the alobur contractor




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