Service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 September 2014 There is a labour contract. Party A (proprieter) provide labours for loading and unloading coin bags, shifting, packing and rasise bill as labour bill for full month at rate (inclusive of service tax) fixed in contract. Rate is fixed on work basis not on worker basis. Party B is doing payment to Party A on rate inclusive of ST after deducting tds @ 1%

Whether it comes under manpower supply and RCM applicable?
if yes then 75% Service tax will be paid by party B

BUT if it is a labour contract then whole Service tax will be paid by party A(contractor).

MOHAMMAD SALIM

MOHAMMAD SALIM (Expert)
Follow

01 October 2014 In order to qualify as manpower supply the manpower supplied must work under superintendence and control of the service recipient and contract must be of supply of manpower and not for any work. As stated in querry that rate if fixed on work basis and not worker basis and thus prima facie it would not fall under manpower supply and thus RCM would not be applicable.

Hope this settles the issue....

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok