Service tax on labour

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Sopan Dattatray Pingale (Querist)
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02 July 2015 Sir,
Please solve my query

1] My co.pvt.ltd interior designer work WCT
One site going at mumbai @rs.3 crore
There working on site 10 contractors POP,Carpenter,Plumbing,construction

Pay her contractor labour charges monthly 50,000/-,60,000/-80,000/- on work depend

my company responsible for 100% service tax payable on contractor payment please suggest me

please solve my query

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 July 2015 If it is a manpower supply(payment may depend on work done) contract your company is responsible for 100% service tax payment under RCM.

Sopan Dattatray Pingale

Sopan Dattatray Pingale (Querist)
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03 July 2015 Sir,

This is simple work contractor ,work complete with 4-5 labour man not purely labour suppliers or register labour supplier he work only for site.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 July 2015 If it is a works contract your company is liable for payment of service tax on 50% value on services portion.

Sopan Dattatray Pingale

Sopan Dattatray Pingale (Querist)
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03 July 2015 Sir,

First
1] This is no work contract means material provided by company only labour work by contractor

2] This contractor not register under service tax

3] issued simple bill of labour work no any tax on bill

please reply

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 July 2015 1 Either you consider it as man power supply and pay 100% service tax or treat it as works contract(material supplied by owner) and pay 50% service tax.
2 The contractor may be a small service provider having turnover less than 9 lacs.
3 Contractor may be providing service less than 10 lacs which is exempted.

Sopan Dattatray Pingale

Sopan Dattatray Pingale (Querist)
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03 July 2015 Sir,

1] My Company Submitted to Client Labour Bill Rs.300000*14%=42000/-

2] For this work labour contractor rs.200000/- pay service tax 14% rs.28000/-

correct sir

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 July 2015 It is correct, if it is for the same work rs 28000 can be claimed as cenvat credit while paying 42000 to Govt.

Sopan Dattatray Pingale

Sopan Dattatray Pingale (Querist)
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03 July 2015 Sir,

1] This Contractor no levied Service tax on bill on rs-200000/-

2] My company can liable to pay service tax on 2 lakh under RCM Rs-28000/-

3] This Amount Rs-28000/- can claim for cen vat credit

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 July 2015 1 Ok.
2 Yes, if it is a manpower supply.
3 Yes it can be claimed.

Sopan Dattatray Pingale

Sopan Dattatray Pingale (Querist)
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03 July 2015 Sir

I Think

1]Service Tax Under RCM set-off can not applicable

2] Which section or notification This Set-off claimed please suggest

3] E.g on GTA service tax paid but not cenvat credit

Please reply

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 July 2015 1 For the payment of service tax under RCM set off not allowed. Once service tax paid in cash under RCM, it can be set off against out put tax payment.
2 See cenvat credit Rules.
3 Cenvat credit can be availed by service receiver for GTA service tax paid under RCM

Sopan Dattatray Pingale

Sopan Dattatray Pingale (Querist)
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03 July 2015 Sir,
Thanks Sir

1] I can Set-off of service tax paid on contractor payment (Man Power Supply) as per cen vat credit rule

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 July 2015 Yes...................

Sopan Dattatray Pingale

Sopan Dattatray Pingale (Querist)
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03 July 2015
Thanks Sir Solve My Query please can give me your contact no.or mail.id if possible

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 July 2015 Welcome. My mail ID is rseeraman@gmail.com.

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