Manpower supply services

Save Share

This query is : Resolved

Neha Gupta (Querist)

07 June 2013 In order to fall under the category of manpower supply service, payment to be made by the co. must be related to the no. of labourers supplied during a specified period and not on the basis of quantum of work carried out.
If in work order it is specified that payment will be made on monthly basis for such contract, will such service come under manpower supply service..

Ganeshbabu K

Ganeshbabu K (Expert)

07 June 2013 1)Service should be manpower supply i.e. under command of Principal Employer.

2)“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].,

So in your case it seems that workers are working under supervision and control of servicer receiver so reverse charge is applicable on this..

So your company is required to discharge servicetax liability under reverse charge.

Applicable if service proveder is Individual, HUF, proprietary or partnership firm, AOP located in taxable territory

And service receiver is Business entity registered as body corporate located in the taxable territory

Message likes : 1 times

Neha Gupta

Neha Gupta (Querist)

07 June 2013 According to the definition of supply of manpower service, manpower supplied by the service provider has to be under the superintendence and control of service receiver.
What will be the situation if such manpower supplied by the service provider is under the
superintendence and control of service provider itself or both ?

Ganeshbabu K

Ganeshbabu K (Expert)

07 June 2013 If responsibility to completion of work is with the service provider it is not manpower supply it can be seen as labour contract and no reverse charge applicable..

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