Applicability of service tax

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This discussion clarifies the applicability of service tax on pure labour services provided by a partnership firm to a company liable for excise duty during the pre-GST era (FY 2015-16). It confirms that under the reverse charge mechanism, specifically notification no. 30/2012, the recipient of the manpower supply service is liable to pay service tax, not the provider. Therefore, the partnership firm does not need to pay service tax in this scenario.

Akash Kulkarni

Akash Kulkarni (Querist)

19 January 2021 If am providing pure labour service to a company which is liable to excise duty,then whether service tax is applicable to me?I am a partnership firm.I want the position for FY 2015-16 that is pre GST era. I have heard that no service tax is payable if service is provided to an excisable company.Please help me in this regard.Thank you!

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

20 January 2021 The above mentioned service is enumerated in the reverse charge notification no. 30/2012 under serial no. 8 as ‘any service provided or agreed to be provided by way of supply of manpower for any purpose or security service.
No need for you to pay service tax as it's to be paid by recipient of service.

Akash Kulkarni

Akash Kulkarni (Querist)

21 January 2021 Okay sir Thank you!!

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