service tax on labour contract


This query is : Resolved 

08 February 2009 we provide skilled and unskilled manpower and charge
1 wages to be paid to labour as defined in contract
2 E P F charges to deposit with epef authority
3 Service charges for providing the labour

Is service tax is payble if payble on what amount . on wages+epf+service charges OR on Service charges only

08 February 2009

It attracts Serivec tax under Business Aauxilliary Services.
The annual threshold limit of service tax exemption for small service providers has been increased from Rs.8 lakh to Rs.10 lakh with effect from 01.04.2008 by amending
Notification No.6/2005-ST dated 01.03.05 vide Notification No. 8/2008 ST dated
01.03.08.
Consequent upon the increase in the threshold exemption limit from Rs.8 lakh to Rs.10lakh, the annual turnover limit for obtaining service tax registration has also been increased from Rs.7 lakh to Rs.9 lakh with effect from 01.04. 2008 by amending
Notification Nos.26/2005-ST and No.27/2005-ST, both dated 07.06.05 vide Notification
Nos. 9/2008 ST and 10/2008 ST, both dated 01.03.08 respectively

thus you should charge gross service tax on gross amount.


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