Reverse service tax on manpower supply

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 October 2013 Hi

I would like to know the following 3 points

1) Is Reverse Service Tax applicable in Manpower Supply

2) How do you define in short Manpower Supply

3) There is a wide talk that in reverse service tax on manpower supply that it is actually applicable to only to that manpower supply firm where there is an employer - employee relationship.

Kindly can any1 explain in detail

Thanking you in advance

Ganeshbabu K

Ganeshbabu K (Expert)

01 October 2013 1)Yes,Reversecharge Applicable on Manpower Supply..
If,Service provider is Individual, HUF, proprietary or partnership firm, AOP located in taxable territory and service receiver should be Business entity registered as body corporate
.
.
Otherwise Reversecharge not applicable

Ganeshbabu K

Ganeshbabu K (Expert)

01 October 2013 2)Service should be manpower supply i.e. under command of Principal Employer.

****“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].

***Cleaning service, piece basis or job basis contract can be ‘manpower supply service’ only if the labour work under superintendence or control of Principal Employer.

3)Reversecharge applicability was mentioned in above reply in your case,

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