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Reverse charge on labour contracts

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Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2013 please tell us whether reverse charge is applicable on labour contracts. if we are paying amounts for various labour works such as construction, rebaring, land levelling, carpenter work and other labour works and all the work orders are entered with the condition that work will be done by the contractor as per our specifications.
Here contractor is executing the work either individually or with his labour force on which the prime supervision is of the contractor.
Now what should be of our stand regarding reverse charge.

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
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18 May 2013 Hi,
As per the Reverse charge mechanism The supply of manpower attracts Reverse charge.

Man power supply means normally if you are you are controlling the activity of the labours then only it is Manpower supply.
in your case Reverse charge is not applicable.

refer article:
https://www.caclubindia.com/articles/reverse-charge-methodology-under-service-tax-16364.asp

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