Labour contractor who provided labour for mfg of excisable g
This query is : Resolved
07 November 2014
Dear Sir,
We are Manufacturer of Excisable Goods, for manufacturing work labour has been provided by Contractor, payment to labour has been paid by us directly instead of contractor and commission on each labour only paid directly to contractor by us.
now we would like to know that what amount shall attract Service tax, should we pay Service tax on Labour Charges paid to Labour directly by us and Commission each labour paid to Contractor by us.
Either of them are applicable for taxes or we should pay taxes on both?
Dhiraj Pudale
Shreem Electric Ltd.,
Maharashtra (Kolhapur)
We are Manufacturer of Excisable Goods, for manufacturing work labour has been provided by Contractor, payment to labour has been paid by us directly instead of contractor and commission on each labour only paid directly to contractor by us.
now we would like to know that what amount shall attract Service tax, should we pay Service tax on Labour Charges paid to Labour directly by us and Commission each labour paid to Contractor by us.
Either of them are applicable for taxes or we should pay taxes on both?
Dhiraj Pudale
Shreem Electric Ltd.,
Maharashtra (Kolhapur)
22 November 2014
Service tax is to be paid on the total bill amount excluding service tax charged by the contractor.
For eg.
Amount paid to labourers - Rs. 30,000
PF - 4000
Service Charges @ 10% - 3000
Total - 37,000
Service tax is applicable on Rs. 37,000
For eg.
Amount paid to labourers - Rs. 30,000
PF - 4000
Service Charges @ 10% - 3000
Total - 37,000
Service tax is applicable on Rs. 37,000
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Accounting treatment of AMC alongwith the purchase of Laptop
- Nursery business
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Issuing of delivery challan by seller of goods
- Tax on Amount transferred in HUF Account
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
