Labour contractor 's service tax liability
This query is : Resolved
BrarAmarjeet
(Querist)
03 October 2013
A labour contractor is providing labour (no goods or materials) to a Builder (Construction company). Whether such a labour contractor should pay service tax on the gross value of wages provided to the labour or is there any abatement he is entitled to ?
Ganeshbabu K
(Expert)
03 October 2013
No abatement,,service tax @25% is to be charged by labour contractor on amount of wages,PF,ESI paid by contractor to laours and commission of contractor
.
.
if reversecharge not applicable contractor needs to charge 100% in his invoice
.
.
if reversecharge not applicable contractor needs to charge 100% in his invoice
BrarAmarjeet
(Querist)
03 October 2013
Thanks for the reply , however, can you please cite the section number /rule according to which higher rate of 25% is applicable...
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