close x


service tax on labour contract

Chartered Accountant ( Job)

Query:-

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?

 
Reply   
 
CHARTERED ACCOUNTANT


Contractor can charge service tax

 
Reply   
 



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

 
Reply   
 
(Guest)

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?

 
Reply   
 
(Guest)

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,

Hitesh

+9879798381

 
Reply   
 

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

 
Reply   
 
(Guest)

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?

 
Reply   
 
Chartered Accountant


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.

 
Reply   
 
(Guest)

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

 
Reply   
 
(Guest)

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

regards

Hemant  

 

 
Reply   
 

LEAVE A REPLY



    

Your are not logged in . Please login to post replies

Click here to login   Click here to Register



 



Share on :