Difference b/w 'manpower supply' vs 'labour contract service

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SUMUKHGB (Querist)
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16 July 2013 Dear all,

Can someone enlighten me the difference b/w 'Manpower supply services' vs 'Labour contract services'?

I felt both of them are bit confusing.

Ganeshbabu K

Ganeshbabu K (Expert)
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16 July 2013 Let me tell you in short..

In labour contract service provider should have the responsibility of doing the work and would be paid only on delivery of his work.

In case of Manpower supply there is no such conditions and ,there is no responsibility to completion of the work.

Meaning of manpower supply:

“Supply of manpower” means supply of manpower, temporarily or otherwise, to another person to work under his superintendence or control.’

[Rule 2(g) of Service Tax Rules, inserted w.e.f. 1-7-2012].

Let me tell you if you are making any payments to HR consultancy for deputing any person also liable to pay service tax under reverse charge as a service receiver. by virtue of meaning provided in rule 2(g) which is "temporary or otherwise"

Thanks & regards
Ganesh babu k

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SUMUKHGB

SUMUKHGB (Querist)
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18 July 2013
i have a query regarding pf applicability in the following scenario

A small subcontractor having employees/workers less than 20 has been appointed by some big pvt ltd manufacturing Co. whether the Co is liable to pay PF on behalf of the sub-contractor as a principal employer ??

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