Service tax on labour charges

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 September 2013 we are Proprietor business engaged in civil & interior contractor. We are getting order for only for doing labour work from Ltd.Co. My question is how we raise invoice to the party, we have charges full service tax rate i.e 12.36% or any reverse charges is their?

Ram Avtar Singh

Ram Avtar Singh (Expert)
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13 September 2013 reversed charges applicable on men power supply under supervision of principle.

Tax on 25% of value by service provider and 75% by service receiver

Ganeshbabu K

Ganeshbabu K (Expert)
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13 September 2013 For Applying reversecharge Service should be manpower supply i.e. under command of Principal Employer.

“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].

So if reversecharge applicable to you you should charge only 25% of 12.36 i.e, 309% of service tax in your bill,,other wise you can charge 12.36%

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