Service tax applicability

This query is : Resolved

Manikandan.G (Querist)
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29 November 2012 Dear Sir,

Please clarify the following Query

My friend is doing Granite quarry Business in which stone cutting charges paid to various contractors on piece rate basis and written agreement also made with them TDS also deducted at the time of payment. Each contractors received more than Rs.10 lakhs p.a.

Whether service tax applicable?

is it covered under reverse charge machnisam?

Stone cutting contractors are submitted bills on monthly basis - piece rate basis. no manpower supply

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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29 November 2012 How The Contractor Bill raised ?

I Mean They raise by Showing Man Power supply or Direct a Contractprice .....?

Manikandan.G

Manikandan.G (Querist)
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29 November 2012 Thank you sir,

They submitted bills on contract price basis

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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29 November 2012 Yes, Then Service Tax Need to Pay.
Beside This, It Not Considered as Works Contracts.

You Can Ask Them to Modify The Bill and Write as
Reimbursement Expenses
and Man Power Supply Charges..
so that only on man power it is chargeable 75% & 25% Under reverse Charge

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