Service tax liability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 June 2013 I am Working with Garment Mfg & Export Company. we have labour contract and give to job work. in this case do we as a principle have to undertake to the service tax liability ?

Arun Kumar Singh

Arun Kumar Singh (Expert)
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19 June 2013 No need to pay service tax on jobwork but you should pay the service tax on manpower services under reverse charge system.

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Ganeshbabu K

Ganeshbabu K (Expert)
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20 June 2013 1)Service should be manpower supply i.e. under command of Principal Employer.
Please do refer

definition of manpower supply

“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].

do check whether it falls under above definition...which ever will comes reverse charge will be applicable

2) Applicable if service receiver is company or business entity incorporated as body corporate

Thanks & regards
Ganesh babu k

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