Reverse charge on labour supply ?

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 January 2016 Dear Sir,
We (Pvt Ltd Co.) receive Labour service for installation and commissioning from an Individual.
My questions are :-
1). whether service tax to be paid under reverse charge on Labour service from Individual ?
2). If Yes, can we take credit of the tax paid under reverse charge ?

Please reply at earliest.
Thanking you

CA. Divyansh Agarwal

CA. Divyansh Agarwal (Expert)

29 January 2016 No reverse charge as material is not supplied with the services hence a pure labour Contract no work contract

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Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)

30 January 2016 In case the labour is working under the superintendence and control of the individual who has supplied the labourers and the contract with the individual is predominantly supply of labour, prima-facie it would be manpower supply and reverse charge would be applicable. Cenvat credit is available for payments made under reverse charge provided it falls within the definition of input service as defined u/s 2(l) of the CCR.

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Querist : Anonymous

Querist : Anonymous (Querist)

01 February 2016 Dear Sir Please suggest,
Under which head of service tax, Amount of Reverse charge will be deposited ? Installation & Commissioning or Manpower supply ???

Ganeshbabu K

Ganeshbabu K (Expert)

01 February 2016 You may deposit under Manpower supply,...

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Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)

01 February 2016 The contract needs to be looked into, if the substance of the contract is manpower supply, registration would be under that head and reverse charge would apply.

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Querist : Anonymous

Querist : Anonymous (Querist)

01 February 2016 Thanks to all the labours for great help...

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