Service tax on labour bill

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2012 WE ARE MANUFACTURING PVT LTD CO. WE HAVE A TURNOVER OF AROUND 50 CR. WE ARE GIVING SOME PRODUCT OUTSIDE ON LABOUR JOB. LABOUR BILL IS AROUND 6 LAKHS P.A. PER VENDOR AND THEY ARE NOT REGISTERED UNDER SERVICE TAX. WHETHER WE ARE LIABLE TO PAY SERVICE TAX ON NEW REVERSE CHARGE MECHANISM.

HOW MUCH SHOULD I PAY?

REGARDS,
JATIN PARIKH

Amol S Joglekar

Amol S Joglekar (Expert)
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08 August 2012 if you fall under the category of notification no 15/2012, then only reverse charge mechnism is applicable. Otherwise not.

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
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08 August 2012 Notification 15/2012 has been overruled by Notification 30/2012. The Not. specifies the % of service tax payable by service provider and service recepient.
You would be liable under the reverse charge in this case if the job work executed can be termed as works contract.